The Australian dollar broke through the October 2021 peak of 0.7555 to reach the best levels since July.
The Aussie has struggled at these levels for the past two weeks, but tentatively broke higher today. The catalyst for AUD/USD is not exactly clear today but the pair is up 56 pips.
China has reported a record number of covid cases, but that could be offset by restarting dormant Evergrande construction projects. The broader signal is that Beijing is pulling growth levers that will demand more commodity exports from Australia.
Technically, this paves the way for a move back into the 0.76-79 range. If economic strength continues and/or inflation subsides without too many rate hikes, the 2018 high at 0.8135 could be in play.