AUD/USD gains momentum as US-China tensions ease, China data improves

AUD/USD extended its rally for a second consecutive session on Monday, climbing as improved US-China trade relations and positive Chinese economic data bolstered the Australian dollar. The risk-sensitive currency benefited from easing geopolitical tensions between the world's two largest economies, reducing concerns about potential trade disruptions. Recent Chinese economic indicators showed signs of stabilization, supporting demand expectations for Australian commodities. The data reinforced optimism about China's recovery trajectory, a crucial factor for Australia's export-dependent economy. Technical momentum remains bullish with the pair breaking above key resistance levels on increased trading volumes. The Reserve Bank of Australia's relatively hawkish stance compared to other major central banks provides additional support. Immediate resistance is seen at recent highs, while support has consolidated at previous breakout levels. Continued improvement in US-China relations and sustained Chinese economic recovery could propel AUD/USD toward higher targets in coming sessions.