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  • The Aussie dollar is rising toward 0.71, likely due to a rally in Dalian iron ore prices.
  • The currency pair has charted a bullish rounding bottom on the hourly chart.

The AUD/USD pair clocked a session high of 0.7091 a few minutes before press time and could rise further as prices of iron ore – one of Australia’s top exports – has hit a three-week high.

At press time, the currency pair is trading at 0.7085, having clocked a low of 0.7066 earlier today.

Chinese iron ore futures jumped about 3 percent on Tuesday to CNY 509.5 – the highest level since mid-September – and have likely put a bid under the oversold Aussie dollar.

Further, the hourly chart is showing a rounding bottom bearish-to-bullish reversal, hence the spot could rise above 0.71, although the sustainability of gains is under question as the US treasury yields are rising. For instance, the 30-year treasury yield rose to a fresh four-year high of 3.4302 percent.

AUD/USD Technical Levels

Resistance: 0.7129 (10-day EMA), 0.7142 (Sept. 17 low), 0.7202 (Aug. 15 low)

Support: 0.7041 (previous day’s low), 0.70 (psychological level), 0.6973 (February 2016 low)