AUD/USD tracks China optimism and copper rally amid risk-on sentiment

The Australian dollar is gaining ground against the US dollar, with AUD/USD benefiting from improved China economic prospects and surging copper prices. The commodity currency's strength reflects growing optimism about Chinese demand recovery, Australia's largest trading partner, which is boosting base metal prices across the board. Copper futures have rallied significantly, providing additional support for the AUD as Australia remains a major commodity exporter. The USD/CNH (offshore yuan) movements are closely watched by AUD traders, as yuan strength typically translates into Australian dollar appreciation given the strong economic ties. Risk appetite remains robust in Asian markets, further supporting high-beta currencies like the AUD against the greenback. Technical indicators suggest AUD/USD could test recent highs if Chinese data continues to surprise positively and commodity prices maintain their upward trajectory. Traders should monitor upcoming Chinese economic releases and any policy announcements from Beijing, as these will likely determine the pair's near-term direction.