AUD/USD faces pressure at 0.6700 on China trade concerns

AUD/USD is trading defensively at 0.6680, down 0.3% as renewed trade tensions weigh on the commodity-linked currency. The Australian dollar faces headwinds from concerns about China's economic outlook and potential trade disruptions, given Australia's significant export exposure to its largest trading partner. Technical analysis reveals the pair struggling to maintain the 0.6700 handle, with immediate support at 0.6650 and resistance at 0.6720. Four potential scenarios are emerging: continued weakness toward 0.6600 if trade tensions escalate, a relief rally to 0.6750 on positive China data, range-bound trading between 0.6650-0.6720, or a sharp decline below 0.6600 on risk-off sentiment. The Reserve Bank of Australia's neutral stance provides limited support, while upcoming Chinese economic indicators and trade developments will be key drivers for the Aussie's near-term direction.