Wednesday's AUD/USD price action suggested a correction in the rally was due nL1N2D9186, but bulls refused to surrender and the prospects for extending gains are increasing.
Investors are shrugging off U.S.-Sino tensions regarding Hong Kong nL1N2D92OA and instead have grabbed hold of the risk-on theme.
Equities ESv1 are adding to gains while copper HGv1 and iron-ore DCIOc2, which are typically correlated with the aussie, remain buoyant.
Buoyant risk sentiment is getting support from USD/CNH CNH= falling below 7.1555 and AUD/JPY rallying towards Wednesday's high and 200-DMA.
AUD/USD bulls have driven the pair back above the 200-DMA and toward the 76.4% Fibo of 0.7032-0.5510 and March monthly high.
Should risk remain upbeat those resistances should break and 0.7020/40 resistance will be targeted.
AUD/USD upside is not guaranteed though.
AUD/USD risk reversals AUD1MRR=FN show that vol premiums for puts over calls are increasing again after they recently decreased.
AUD/USD bulls seem in control for now though.
Unless bears can get AUD/USD below key support near 0.6370 bulls will maintain the advantage.