{"id":30355,"date":"2026-03-10T21:59:39","date_gmt":"2026-03-10T21:59:39","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30355\/"},"modified":"2026-03-10T21:59:39","modified_gmt":"2026-03-10T21:59:39","slug":"aud-usd-climbs-to-0-7125-aided-by-firmer-australian-yields-as-a-weaker-us-dollar-underpins-momentum","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30355\/","title":{"rendered":"AUD\/USD climbs to 0.7125, aided by firmer Australian yields, as a weaker US dollar underpins momentum"},"content":{"rendered":"AUD\/USD traded near 0.7125 on Tuesday, up 0.70% on the day and rising for a third session. The move was supported by a softer US Dollar and expectations around Australian monetary policy.\n\nChina\u2019s February trade surplus was $213.62B, above forecasts of $179.6B and the prior $114.1B. In yuan terms, the surplus was CNY 1,500B versus a revised CNY 808.55B previously and a forecast of CNY 950B.\n\n<h3>Australian Sentiment And Business Surveys<\/h3>\nIn Australia, Westpac Consumer Confidence rose 1.2% in March after two monthly falls. NAB Business Confidence slipped to -1 in February from 4, while Business Conditions held at 7.\n\nAustralia\u2019s 10-year government bond yield rose to about 5%, the highest since July 2011. Middle East tensions lifted energy prices and inflation concerns, with the RBA saying it is \u201cvery alert\u201d to risks to inflation expectations.\n\nThe US Dollar eased as safe-haven demand reduced after comments that the Iran conflict could end \u201cvery soon\u201d. Markets are watching upcoming US CPI and PCE inflation data.\n\nMarket pricing implies about a 55% chance of a 25-basis-point RBA rise on 17 March. A move above 0.7150 would mark a break beyond the year\u2019s high.\n\n<h3>March 2025 Setup And Options Implications<\/h3>\nWe recall a similar setup around this time in March 2025, when the Aussie dollar showed strength near 0.7125 against a softening US dollar. This move was driven by expectations of a hawkish Reserve Bank of Australia, creating a favorable interest rate outlook for the AUD. The market was intently focused on the RBA&#8217;s upcoming policy decision.\n\nThe RBA&#8217;s inflation concerns at that time, which pushed Australian 10-year bond yields to around 5%, proved to be well-founded. We now know that Australia&#8217;s Trimmed Mean CPI for the fourth quarter of 2025 registered a persistent 3.8%, justifying the central bank\u2019s vigilant stance. This backdrop of sticky inflation eventually led the RBA to deliver another rate hike in November 2025.\n\nOn the other side of the equation, the US dollar&#8217;s weakness in early 2025 was tied to hopes for geopolitical de-escalation, but traders were cautiously awaiting key inflation data. This theme remains relevant, as the most recent US Core CPI for January 2026 came in at 3.9%, reminding us that the inflation battle is ongoing. Derivative traders should therefore anticipate volatility around upcoming inflation releases.\n\nWith the AUD\/USD pair testing the key 0.7150 resistance level in that 2025 scenario, buying short-dated call options would be a logical strategy. This allows for participation in a potential upside break following the RBA meeting while strictly defining risk in case of a surprise dovish turn. Looking back, we know the pair struggled to sustain gains above 0.7200 through mid-2025, which underscores the value of using defined-risk option structures.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>AUD\/USD rose to 0.7125 as USD softened; China surplus surged; RBA hike odds rose; yields hit 5%.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-30355","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=30355"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30355\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}