Australian Dollar futures showed significant relative strength on Tuesday, climbing nearly 0.5% to test the upper bound of a three-year trading range. The rally marks a second consecutive session of gains, with prices pushing toward the .7150 level. Market sentiment is being driven by a hawkish tilt from the Reserve Bank of Australia (RBA), with traders weighing the potential for rate hikes later in 2026. This domestic strength coincided with broad selling pressure in the U.S. dollar, which provided a lift to most major currency pairs. Euro futures, British Pound futures, and Japanese Yen futures all traded higher as the greenback retreated. If the Australian dollar can break out above its recent six-week consolidation, it would mark the highest levels for the currency since early 2023.
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