I found a few connotations of how the slang "peachy" is used:
Vocabulary.com: #1: very good [non sarcastic]:
If you're unhappy, it's usually best to be honest about it, rather than pretending everything's peachy.
Merriam-Webster Thesaurus: "of the very best kind" as in lovely:
a look back at those innocent days when the offerings at the local soda fountain might have been described as "simply peachy"
Wiktionary #2: (colloquial) Very good, excellent, typically used sarcastically to indicate a state of misery, resentment or great frustration:
Oh, life is just peachy now that winter has come, it’s snowing all the time, and I’m freezing my backside off
What's the origin of this American slang, and how did it become more common today to use peachy in a sarcastic way?