AUD/USD Retreats Over 1% From Multi-Year High on USD Strength

AUD/USD has pulled back sharply, declining over 1% from a multi-year peak as the US dollar surged on intensifying safe-haven demand driven by the US-Iran geopolitical crisis. Despite the retreat, bulls are finding renewed hope in key technical support levels and the Reserve Bank of Australia's hawkish policy stance, which continues to underpin the Australian dollar. The RBA's reluctance to cut rates amid persistent domestic inflation provides a fundamental floor for the pair, contrasting with markets progressively pricing out Federal Reserve rate cuts due to the inflationary impact of rising oil prices. Technical analysis suggests the pullback may find support at established levels that previously served as resistance during the pair's rally to multi-year highs. Traders should watch for a potential consolidation phase as the pair digests its recent gains. A bounce from technical support could signal renewed upside momentum, while a break below would expose deeper corrective targets and confirm a broader trend reversal.