AUD/USD stretches bullish momentum further beyond 0.7600 level

Extending its strong bullish momentum, the AUD/USD pair is now building on to its gains beyond 0.7600 handle to currently trade within striking distance of its pre-Brexit high of 0.7647.

After last week's consolidative move within a broad trading range and Monday's brief pause, the pair finally broke on the upside on expectations of additional stimulus by Chinese central bank. Data released over the weekend showed Chinese inflation moderating further to a 5-month low to print 1.9% y-o-y rise in June as compared May's 2%.

Being Australia's largest trading partner, Chinese economic data has a last effect on commodity-linked currencies, including Aussie. Hence, focus would remain on this week's important Chinese economic data, that includes - trade balance data on Wednesday and second quarter GDP data on Friday.

Meanwhile, a broadly weaker US Dollar is also extending support to the ongoing bullish sentiment surrounding the AUD/USD pair.

Technical levels to watch

A clear break above June swing high resistance around 0.7645-50 region seems to boost the pair immediately towards 0.7700 handle, above which a fresh leg of up-move might continue to boost the pair towards its next major resistance near 0.7800-0.7815 in the near-term. 

On the flip side, weakness below 0.7600 round figure mark now seems to find support around 0.7560-55 area, which if broken might negate any near-term bullish bias and turn the pair vulnerable to break below 0.7500 psychological mark and aim towards testing 100-day SMA support near 0.7460 region.