The Australian Dollar is exhibiting resilience against bearish pressure, reclaiming lost ground during Friday’s European session. Positive market sentiment and a relatively softer US Dollar are contributing to the buoyancy of the AUD.

For the AUD/USD pair, a crucial confirmation lies above the 0.6600 level, which would then direct attention towards the key resistance area at 0.6650.

The Australian Dollar is gaining positive momentum, influenced by an improved market mood as European markets trade with a moderately positive tone. Additionally, some profit-taking activity is observed after the significant rally of the US dollar earlier in the week.

The US Dollar Index is experiencing a lack of momentum, remaining nearly unchanged for the day and staying below one-month highs for the third consecutive day. The earlier rally in US Treasury yields has slowed down, and the US Dollar may require fresh catalysts to sustain the 2.8% rally observed in January.

Recent data from the US has supported the US Dollar, with jobless claims falling unexpectedly last week, reinforcing the perception of a robust economy. This has led to a reassessment of rate cut expectations, which had been overly optimistic in December.

On the global front, data from China indicates challenges for the world’s second-largest economy. Fourth-quarter GDP and Retail Sales figures came in below expectations, heightening concerns among investors. The disappointing data raises expectations for more substantial stimulus measures and puts additional downward pressure on the Australia-proxy AUD.