AUD/USD runs into resistance around 0.6818-22 before backing off slightly

AUD/USD H1 05-09

Buyers have done well to build upside momentum over the past few sessions this week as price climbs off lows just under 0.6700 to now test key resistance from the swing region around 0.6818-22 earlier today.

That will be the key level to watch out for this week and buyers need to hold a firm break above that to extend the upside momentum further from here.

The aussie is the lead gainer among major currencies today amid renewed optimism in US-China trade relations as progress is being cited towards proposed trade talks in the coming weeks. That is helping to boost risk appetite across markets so far today.

However, as highlighted yesterday, yields may be another factor that could continue to help drive the aussie higher still for the time being:

AU yields

There has been a bit of a divergence in the US-Australia yields spread in favour of the aussie as of late and that hasn't really been reflected by AUD/USD price action for the most part - counting out the moves over the past few sessions that is.

As such, a firm break above the resistance region around 0.6818-22 may lend further momentum to the pair potentially towards 0.7000 before sellers reenter the picture.