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The Australian Dollar struggled to build on its previous session bounce from the 0.7120 region during Thursday's Asian trading session. Despite the release of positive Chinese PMI figures and Australian trade balance data, the AUD/USD currency pair remained confined within a narrow trading range above 0.7150. Investors appear hesitant to take aggressive directional bets ahead of major macroeconomic events. Market sentiment surrounding the AUD/USD pair is being influenced by mixed global economic indicators and cautious federal reserve policy expectations. While China's service sector expansion provides underlying support for the commodity-linked currency, broader US dollar strength limits significant upside momentum. Traders are carefully weighing domestic trade outcomes against broader risk appetite in global financial markets. Moving forward, market participants will closely monitor upcoming economic data releases from the United States, alongside further economic policy cues from Beijing. A decisive breakout above current resistance levels or below key support around 0.7120 will likely dictate the pair's short-term trajectory, offering clearer signals for market participants.
