The AUDUSD has been trending higher over the past week, supported by renewed optimism over improved U.S.–China relations. Hints that China may resume buying U.S. soybeans have helped lift risk sentiment, though expectations suggest those purchases will be smaller in scale, with China likely sourcing more from South America. Meanwhile, a meeting between President Trump and President Xi in South Korea tomorrow looms large, especially with 155% tariffs set to take effect on November 1 and uncertainty surrounding rare earths policy still lingering.
From a technical perspective, the pair found support yesterday at the 38.2% retracement level before pushing higher, breaking above the 50% retracement of the decline from the September high at 0.6573, which now acts as a key support area. Today’s low at 0.6578 held above that zone before buyers drove the pair through the 61.8% retracement at 0.6605, reaching an intraday high of 0.6612. After a modest pullback to 0.6586 early in North American trading, the pair has rebounded toward the 61.8% level once again.
A sustained move above 0.6605 would keep the bullish bias intact, opening the door toward a major resistance zone between 0.6625 and 0.6635 — a ceiling that has capped rallies since mid-September. A break above this area would mark a significant shift in momentum and strengthen the bullish case heading into the Trump–Xi meeting.
