**AUD/USD Technical Analysis: Aussie Dollar Eyes Further Gains as China’s Core Inflation Supports Rally**
*Adapted from an article by Kelvin Wong, MarketPulse. Additional insights integrated from recent industry commentary and forex analysis.*
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### Table of Contents
1. Overview of Recent AUD/USD Movements
2. Key Technical Levels
3. The Influence of China’s Economic Data
4. Sentiment and Other Market Drivers
5. Broader Context: Global Risk Appetite and US Dollar Movements
6. What’s Next for the Aussie Dollar?
7. Conclusion
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### 1. Overview of Recent AUD/USD Movements
The Australian Dollar (AUD) has experienced renewed bullish momentum against the US Dollar (USD) in recent sessions. After consolidating within a tight range earlier in the month, the AUD/USD currency pair has broken higher, drawing investor focus as global risk sentiment fluctuates and key macroeconomic data emerges.
– The Aussie Dollar has historically correlated with Chinese economic data, particularly metrics signaling the pace of China’s post-pandemic recovery.
– Recent support is attributed in part to firmer core inflation figures out of China, suggesting underlying domestic demand remains intact despite global headwinds.
– AUD/USD’s rally brings it closer to a significant technical resistance level observed over the past several months.
Recent trading sessions have seen AUD/USD climb, reversing prior bearish sentiment and triggering discussions among technical analysts about the prospect of further upside.
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### 2. Key Technical Levels
A closer examination of the AUD/USD chart, focusing on daily timeframes, provides insight into important resistance and support zones shaping the pair’s short-term trajectory.
**Notable Technical Levels:**
– **Support:**
– 0.6600: A psychological round figure, also aligned with previous swing lows.
– 0.6575: Short-term support from prior consolidation.
– **Resistance:**
– 0.6700: Current area of focus, having served as resistance several times in 2024.
– 0.6735: An upper boundary marking the high from early May, notable for repeated rejections.
– 0.6800: Longer-term resistance; a sustained break above could confirm a bullish reversal.
**Technical Patterns & Indicators:**
– The currency pair formed a minor base between 0.6575 and 0.6600, providing a foundation for the latest move higher.
– Moving averages (20-day and 50-day simple moving averages) are converging, with price action recently vaulting above them, which typically suggests strengthening bullish momentum.
– Momentum oscillators, including the Relative Strength Index (RSI), have shifted from neutral to mildly bullish, but have not yet entered overbought territory.
These technical signals indicate that as long as AUD/USD remains above 0.6600, bulls have the upper hand, with focus turning to the critical 0.6700-0.6735 resistance zone as a potential hurdle.
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