The Australian dollar has edged through the October 2021 peak of 0.7555 to the best levels since July.
The Aussie has struggled at these levels for the past two weeks but has tentatively broken higher today. The catalyst for the AUD/USD isn’t exactly clear today but the pair is up 56 pips.
China reported a record number of covid cases but that might be outweighed by the restart of idled Evergrande construction projects. The broader signal there is that Beijing is pulling on growth levers that will demand more commodity exports from Australia.
Technically, this opens the way f or a return to the 0.76-79 range. If economic strength holds up and/or inflation fades without too many rate hikes, the 2018 high of 0.8135 could be in play.