The easing of the geopolitical situation has boosted risk appetite and the dollar has weakened, and the Australian dollar has continued to rebound against the dollar

In European trading on Wednesday, the Australian dollar continued its rebound against the US dollar, with the exchange rate rising to around 0.7170. From the overall performance, the Australian dollar performed relatively strongly among major currencies, indicating that the market risk appetite has improved significantly.

In terms of market conditions, improving risk sentiment is one of the core factors driving the strength of the Australian dollar. As the situation in the Middle East shows signs of gradual easing, the extension of the ceasefire arrangement by the United States has reduced the market's fear of further escalation of the conflict. This change has increased investor appetite for risk assets and pushed funds into high-yield and cyclical currencies. A recovery in risk sentiment usually benefits commodity currencies such as the Australian dollar, which has been an important driver of exchange rate gains.

From the perspective of market performance, the simultaneous strengthening of risk assets also confirms this trend. S & P 500 futures rose toAbout 7110 pointsThe Aussie dollar's performance was further supported by the flow of funds from safe-haven assets to equity markets and commodity currencies, reflecting increased confidence in the economic outlook.

Meanwhile, a weaker dollar provided additional support to the Australian dollar. The dollar index retreated to around 98.25,Ava ForexShowing that its relative advantage among major currencies has weakened. The pullback of the US dollar reduced the relative depreciation pressure on the Australian dollar, allowing the Australian dollar to continue its rebound against the US dollar.

From a data standpoint, the market is waiting for the upcoming purchasing managers' index (PMI) data. The data will reflect the activity level of manufacturing and services, which is important for judging economic momentum. If the data is strong, it may further strengthen the market's confidence in the economic recovery, thus supporting the performance of risk assets.

From a technical perspective, the daily level shows that the Australian dollar/US dollar maintains a good upward structure. The price continues to operate above the 20-day exponential moving average,The moving average is located at 0.7081 and constitutes a key supportIt shows that the bulls still have the upper hand. Since the March low, the exchange rate has gradually risen, forming a stable upward trend.

In terms of kinetic energy indicators, the RSI is running near 63, which is in the long area but has not yet entered the overbought range, indicating that there is still room for upward momentum; the MACD remains above the zero axis, and the current trend is too high.

From the perspective of the 4-hour cycle, the exchange rate shows a steady upward structure, with a limited short-term pullback, indicating a strong buying commitment. If the price continues to stand above 0.7150, it is expected to further test0.7222 Key resistance levelThis position is an important recent high. Once it breaks through, it may open up new upside.

However, the lower support is also worth watching. If the price falls below the 0.7080 area, it may trigger a deeper correction or even a backtest0.7000 psychological barrierAt present, as long as the price remains above the key moving average, the overall upward structure will remain

Overall, the Australian dollar is currently in a favorable environment of "improved risk sentiment + weaker US dollar", with a strong short-term trend.

edit summary

The Australian dollar continued to rebound against the US dollar, driven by the recovery of risk appetite and the weakening of the US dollar. The technical side shows that the bull structure is solid. In the short term, the market will pay attention to PMI data and changes in global risk sentiment. If the wind risk environment continues to improve, the exchange rate is expected to further rise to test key resistance areas. However, be vigilant against the risk of a pullback caused by lower than expected data or weaker sentiment.