The AUD/USD pair surged on Monday, reaching a fresh five-month high near the 0.6500 level. The Australian Dollar (AUD) benefits from a range of factors, including the US Dollar's (USD) weakness, a solid economic report from the US and the strengthening of global risk sentiment.

The Australian Dollar's performance also mirrors broader optimism stemming from the victory of Anthony Albanese's Labor Party in Australia's parliamentary elections, signaling the continuation of stable economic policies. Meanwhile, ongoing trade talks, particularly between the US and China, have contributed to a shift in market sentiment.
The Labor Party's victory in Australia is seen as positive for the country's economic outlook, though uncertainties linger over US-China trade relations.
The US Dollar Index (DXY) continues to face downward pressure, primarily due to the ripple effects of a sharp 5% surge in the Taiwan Dollar (TWD).
The revaluation of the TWD, which is linked to expectations of a trade deal with the US, has undermined the Greenback, with key currencies like the Japanese Yen (JPY) and the Australian Dollar (AUD) benefiting from this shift.
Meanwhile, domestic data such as the ISM Services PMI (51.6) further dampens the bearish mood surrounding the US Dollar, helping to mitigate some of its losses.

Source: Fxstreet