The Australian Dollar surged by 71 pips or 1.00% against the US Dollar on Tuesday. The currency pair tested the 200– hour simple moving average at 0.7150 during yesterday’s trading session.
The exchange rate could continue to trend bullish through the following trading session. The possible target for the AUD/USD pair would be near the weekly R1 at the 0.7230 level.
However, the currency exchange rate could make a deep retracement towards the 0.7050 level within the following trading session.