AUD/USD trades at 0.6792, the highest level since 21 August
The momentum continues to side with buyers as price closes in on a test of the swing region around 0.6796-00 currently.
Buyers seized near-term control in overnight trading and they haven't looked back since as the more upbeat risk mood today is helping to keep the aussie buoyed and the dollar weaker.
So, what's next for the pair?
I have argued that the pair has been dictated by yields over the last two years and with the RBA and Fed still at play amid ongoing central bank focus, that remains unchanged.
As such, looking at this:
There has been a bit of a divergence in the yields play back in favour of the aussie as of late, which has not been reflected by AUD/USD.
I reckon if the currency pair can chase a move towards the 8 August high of 0.6822 and break above that, we could potentially see a more meaningful breakout potentially back towards 0.7000 if the yields spread allows for it.
