AUD/USD stalls at 0.6520 despite US government shutdown resolution

AUD/USD is trading around 0.6520, struggling to build on earlier gains despite optimism surrounding the resolution of US government shutdown concerns. The pair had initially rallied 0.2% (13 pips) from Friday's close as risk sentiment improved following congressional progress on funding legislation. However, the Australian dollar's advance has been capped by persistent concerns over China's economic outlook and expectations of continued RBA rate pause. Technical indicators suggest mild bullish momentum with immediate resistance at 0.6535 (50-day moving average) and support at 0.6500 psychological level. The pair's direction remains largely dependent on broader USD movements and risk appetite, with traders awaiting upcoming Australian employment data on Thursday and Chinese economic indicators later this week. A sustained break above 0.6535 could target 0.6550, while failure to hold above 0.6500 may trigger a retest of recent lows near 0.6480.