AUD/USD rises 0.4% on strong Chinese data, easing geopolitical risks

AUD/USD has climbed 0.4% to 0.6750, supported by upbeat Chinese economic data and cooling Middle East tensions after Israel proposed a revised hostage deal with Hamas. China's latest economic indicators showed improvement across manufacturing and services sectors, boosting demand expectations for Australian commodity exports. The risk-sensitive Aussie dollar gained additional support from reduced geopolitical uncertainty, encouraging traders to unwind defensive positions. Technical analysis shows AUD/USD breaking above the 0.6730 resistance level, with next targets at 0.6780 and the psychological 0.6800 mark. The 50-day moving average at 0.6700 now acts as immediate support. Traders should watch upcoming Australian employment data and China's industrial production figures for confirmation of the recovery trend. Any deterioration in China's economic momentum or renewed Middle East tensions could quickly reverse current AUD gains.