AUD/USD retreats from recent highs as correction phase begins

AUD/USD has entered a short-term correction phase after posting significant gains in recent sessions. The pair is experiencing profit-taking pressure as traders lock in gains from the previous upward momentum. Market dynamics suggest the Australian dollar's recent strength may have been overextended, prompting this technical pullback. The correction appears to be a healthy consolidation rather than a trend reversal, with underlying fundamentals still supportive of the Aussie dollar. Key factors include China's economic recovery prospects and commodity price strength, particularly in iron ore and energy sectors. Technical analysis indicates initial support at 0.6450, with stronger backing at the 0.6420 level. Resistance is now established at recent highs near 0.6500. Traders should watch for any shifts in risk sentiment or commodity market movements that could influence the pair's direction. The correction may provide buying opportunities for those bullish on AUD/USD's medium-term prospects.