The dollar is slumping further across the board and that is helping to lift AUD/USD to its highest levels in almost three years as the pair looks to break resistance at around 0.7800-20 and keep a break towards 0.8000 potentially next.
This could be turning really ugly, really fast for the dollar if the moves today are anything to go by. As much as EUR/USD and USD/JPY aren't breaking to fresh ranges, there's a lot still at stake for the greenback at the moment.
GBP/USD is knocking on the door of a break of 1.4000 that could open up the path towards the 2018 highs above 1.4300 while AUD/USD could be securing a firmer break towards 0.8000 as noted above.
Adding to that is NZD/USD looking poised for its highest weekly close for the year as it starts to chase a push towards 0.7300 today.
Going back to AUD/USD, holding a break above the region of 0.7800-20 is key for buyers to extend the upside momentum going forward.
From a technical perspective, that shifts the focus towards 0.8000 next with the potential to look towards the 2017-18 highs around 0.8125-36.
A key caveat to watch for the aussie though is that today's move may also be a bit rate-driven. Westpac revised higher its forecast for 10-year aussie yields to 1.90% and that has lifted rates to 1.43% today amid a wave of selling in bonds.
Inadvertently, 3-year yields (RBA target) is also a touch higher at 0.12% and that could prompt the RBA to step back into the market to keep it closer to 0.10% as intended.