• AUD/USD retreats from two-month highs before initiating fresh upside.
• The US dollar keeps its downbeat momentum intact ahead of key US data.
• Daily technical setup favors bulls, as the aussie ignores mixed China’s trade figures.

AUD/USD is looking to extend the rebound to test 0.7300 after basing out near 0.7265 in the Asian trades.

Mixed Chinese trade figures for December failed to hinder the aussie’s renewed upside, mainly driven by the broad weakness in the US dollar in the face of the 40-year high inflation levels.

The aussie also ignores the risk-off trading in the global equities, with the recovery gaining ground ahead of the US Retail Sales and Consumer Sentiment data.

AUD/USD: Technical outlook

AUD/USD: Daily chart

Technically, the pair is gathering pace to extend the upside breakout from an ascending triangle confirmed on Wednesday.

The 21 and 50-Daily Moving Averages (DMA) bullish crossover also remains in favor of AUD bulls.

Strong resistance is seen at 0.7300, followed by two-month highs of 0.7315. Further up, the bulls may challenge the 0.7350 psychological barrier.  

The 14-day Relative Strength Index (RSI) is gradually inching higher above the midline, justifying the bounce in the spot.

Although buyers need to find acceptance above the 100-DMA at 0.7288 to push northwards.

Alternatively, the corrective pullback will likely remain capped near-daily lows, below which the 0.7200 level could be eyed.

AUD/USD: Additional levels to consider