{"id":30524,"date":"2026-03-12T09:00:14","date_gmt":"2026-03-12T09:00:14","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30524\/"},"modified":"2026-03-12T09:00:14","modified_gmt":"2026-03-12T09:00:14","slug":"during-asian-trading-aud-usd-drops-to-0-7125-as-the-stronger-us-dollar-halts-its-rally","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30524\/","title":{"rendered":"During Asian trading, AUD\/USD drops to 0.7125 as the stronger US dollar halts its rally"},"content":{"rendered":"AUD\/USD fell in Asia on Thursday, ending a four-day rise after reaching about 0.7185, its highest level since June 2022. It traded near 0.7130, down 0.30%, and earlier slid to 0.7125.\n\nThe US Dollar firmed as tensions involving Israel, US forces, and Iran reduced demand for risk assets. Higher Crude Oil prices raised inflation concerns, lowered expectations of near-term US Federal Reserve rate cuts, and pushed US Treasury yields higher.\n\n

Rba Outlook Shifts<\/h3>\nIn Australia, comments from RBA Deputy Governor Andrew Hauser led markets to bring forward expectations for a second rate rise as early as next week. This supported the Australian Dollar and limited further AUD\/USD losses.\n\nOn the 4-hour chart, the pair held below the 200-period EMA and later moved above the 0.7130 level. RSI is near 55, and MACD remains slightly positive, though momentum has eased.\n\nSupport is around 0.7120, then 0.7080 and 0.7040, near prior lows and the 200-period EMA. A break below 0.7040 would point to 0.7000, while resistance is at 0.7150, then 0.7175 and 0.7220.\n\nWe recall that period in early 2025 when the pair was pulling back from a multi-year top near 0.7185, with many seeing the dip as a buying opportunity. That bullish sentiment was supported by a hawkish Reserve Bank of Australia which seemed ready to hike rates further. As of today, March 12, 2026, with the AUD\/USD trading around 0.6650, the market dynamic has clearly shifted.\n\n

Drivers Behind The New Regime<\/h3>\nThe aggressive RBA stance we noted back then has reversed, as Australian inflation has cooled to 3.2%, prompting the central bank to cut the cash rate to 3.10%. While the US Federal Reserve has also started its own easing cycle, the interest rate differential still provides underlying support for the US dollar. This fundamental change is a primary reason the pair failed to hold onto gains above the 0.7000 level throughout last year.\n\nThe risk aversion that was pushing the US dollar higher has eased, but headwinds for the Aussie dollar have emerged from other areas. We have seen key commodity prices soften, with iron ore, a crucial Australian export, falling from over $130 a tonne in late 2024 to around $110 a tonne currently. This puts direct pressure on the Australian dollar’s valuation.\n\nFor derivative traders, this environment suggests that selling call options with strike prices well above current levels, perhaps around the old support of 0.7000, could be a viable strategy. The odds of a sharp rally back to those early 2025 highs seem low given the current central bank policies. Alternatively, traders expecting continued softness could consider buying put options with a strike below the 0.6600 support level.\n\nThe technical picture has soured significantly since we saw resilience above the 0.7100 mark. The previous support level around 0.7080 now represents a major long-term resistance area. Our focus in the coming weeks will be on whether the pair can defend the 0.6600 handle, as a sustained break below it could open the door to testing the lows from last year.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

AUD\/USD ends four-day rally, slips near 0.7130 as dollar firms; RBA hike bets limit losses.<\/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-30524","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\/30524","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=30524"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30524\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}