AUD/USD surges to test 200-day MA as US dollar slumps on Moody's downgrade
AUD/USD has jumped 0.8% to 0.6785, reaching a two-month high and challenging the 200-day moving average resistance at 0.6800. The rally is driven by broad-based US dollar weakness after Moody's unexpectedly downgraded the United States' credit rating, citing fiscal deterioration and governance challenges. The Australian dollar is also benefiting from improved risk sentiment and expectations of a Reserve Bank of Australia rate cut in the coming months as inflation pressures ease. Immediate resistance is at the 200-day MA (0.6800), followed by the psychological 0.6850 level. Support has shifted higher to 0.6750 (previous resistance) and 0.6700. A decisive break above the 200-day MA could pave the way for further AUD/USD gains, while failure to sustain the momentum might lead to a pullback.
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