AUD/USD Surges to Three-Year High on Broad Dollar Weakness

AUD/USD has surged to a three-year high, maintaining strong bullish momentum as the Australian Dollar benefits from a combination of US Dollar weakness and positive risk sentiment across Asian markets. The pair is holding elevated levels at the start of the week, supported by renewed appetite for commodity-linked currencies amid improving global trade dynamics. Regional developments, including Taiwan's enhanced security posture and corporate expansion signals from LG in the luxury tech space, have contributed to a broadly constructive tone in Asia-Pacific markets. The Reserve Bank of Australia's relatively hawkish stance compared to the Federal Reserve's softening outlook continues to underpin AUD demand. Technically, the breakout above the three-year resistance zone opens the door to further upside, with traders now eyeing psychological resistance levels above current prices. Support has been established at the prior breakout zone. Traders should watch for potential profit-taking at these extended levels, while any pullback toward support could offer re-entry opportunities for those aligned with the prevailing bullish trend.