AUD/USD extends rally to 0.6650 on Fed dovishness and risk appetite

AUD/USD surged 0.6% to 0.6650, marking its third consecutive day of gains as the Australian dollar benefited from improved risk sentiment and continued US dollar weakness following the Fed's dovish stance. The pair has now rallied over 200 pips from Monday's low of 0.6450, with bullish momentum accelerating after breaking above the key 0.6600 resistance level. The Fed's decision to pause rate hikes and hint at potential cuts later in 2024 has significantly weakened the greenback, while commodity currencies like the AUD have attracted strong buying interest. Additionally, firmer commodity prices, including a 2% rise in iron ore, have provided fundamental support for the Aussie. Technical indicators remain bullish, with the RSI at 68 suggesting room for further gains before overbought conditions. Immediate resistance lies at 0.6680, while support has formed at 0.6620, offering favorable risk-reward for long positions.