AUD/USD Rebounds on Risk-On Flows After Breaking Key Moving Averages

AUD/USD is ticking higher after a volatile session that saw the pair decline sharply from post-CPI highs near levels not seen since June 5. The pair had broken below critical technical levels, including the 100-hour moving average at 0.70598 and the 100-day moving average at 0.7055, with sellers pushing toward the 200-hour moving average at 0.7045. However, renewed risk-on sentiment across global markets has helped the pair stabilize and begin recovering lost ground. The reversal was supported by improved market appetite following in-line U.S. CPI data for July, which tempered expectations for aggressive Federal Reserve rate hikes. Traders should monitor the 0.7055–0.7060 zone, where the 100-day and 100-hour moving averages converge as near-term resistance. A sustained break above this cluster could open the path back toward the recent highs above 0.7080. On the downside, the 200-hour moving average at 0.7045 remains key support. The interplay between risk sentiment and U.S. rate expectations will likely dictate near-term direction for the pair.