AUD/USD rallies as US debt concerns weaken dollar sentiment

AUD/USD has advanced 0.5% to 0.6580 as the US dollar weakens amid mounting concerns over America's fiscal health and ballooning debt levels. The US debt-to-GDP ratio approaching 125% has sparked investor anxiety about long-term dollar sustainability, prompting flows into commodity currencies. The Australian dollar has additionally benefited from steady Chinese economic data and resilient domestic employment figures showing unemployment holding at 3.9%. Technical analysis shows AUD/USD breaking above the 50-day moving average at 0.6565, with immediate resistance at 0.6600. Support has formed at 0.6550, coinciding with the previous week's consolidation zone. A sustained move above 0.6600 could open the path toward 0.6650, while any risk-off sentiment could quickly reverse gains. Traders are closely watching upcoming Australian inflation data and Federal Reserve officials' comments on the US fiscal situation.