AUD/USD Bulls Regain Control as Key Psychological Support Level Holds

AUD/USD is trading with a bullish bias as the pair successfully defended a key psychological support level, signaling renewed buying interest from bulls. The technical outlook has shifted decidedly to the upside, with the path of least resistance now favoring further gains. Price action suggests that dip-buyers have stepped in aggressively near the critical support zone, preventing a deeper correction and establishing a firm base for a potential rally. The broader risk sentiment has been supported by developments in US-Iran diplomatic talks, with comments from Vice President Vance driving down oil prices and boosting risk-sensitive currencies like the Australian dollar. However, Australia's domestic outlook remains a concern, with business confidence plunging to -29 as geopolitical uncertainty weighs on the economic outlook. Traders should monitor resistance levels above the current range for confirmation of continued bullish momentum, while a failure to sustain gains could see the pair retest the recently defended psychological floor. Near-term direction will likely hinge on upcoming risk sentiment shifts and US dollar dynamics.