AUD/USD Price Forecast: Looks to build on momentum above mid-0.7100s amid bullish setup

AUD/USD extended gains above the mid-0.7100s as bullish technical momentum gathered pace amid a weaker US dollar and improved risk sentiment. The rally is being supported by narrowing US-Australia interest rate differentials and stronger-than-expected Chinese economic data, which boosted demand for commodity-linked currencies. The Australian dollar is particularly sensitive to shifts in global risk appetite and Chinese growth dynamics due to its strong trade ties with mainland China. Key resistance looms near 0.7200, where previous price congestion and options barriers may test the strength of the current upward move. Traders will focus on the upcoming RBA meeting minutes and US CPI print for cues on relative central bank policy paths.

The US Dollar (USD) is the world's primary reserve currency and the base for most forex majors. Headlines about Federal Reserve policy, US macro data (CPI, NFP, GDP), and Treasury yield shifts typically drive USD pair direction within seconds of release.

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