AUD/USD Climbs Above 0.6750 After Australian CPI Data
After closing above the 06750 level, the AUD/USD pair is now in recovery mode and is en route to the next resistance levels. Earlier, the Australian CPI inflation was below expectations which caused the AUD/USD pair to lose over 40 pips.
According to experts, the recent inflation data will increase the chances of a pause in the RBA's rate hike policy. Looking ahead, the Fed's meeting is now in focus & will likely set the long-term mood of the AUD/USD pair.
AUD/USD's Next Target Is 0.6800
Overall, the AUD/USD pair jumped higher on Tuesday as it extended its bullish rebound from the 20 SMA and is now heading toward 0.6800. After the rebound, all the technical indicators on the daily chart are now hinting towards more upside.
If the AUD bulls manage a close above the 0.6820 level, the next possible target will be the 0.6900 resistance area. On the other hand, if the 0.6690 is pierced and we get a daily close, it would lead us to the 0.6600 support level which was the low of July.
A look at the 4-hr chart reveals that the AUD/USD bias is also towards the upside as long as the 0.6755 is defended by the bulls. For now, the immediate resistance that presents a threat to the bulls is the 0.6800 level where the 100 SMA is also present.
After that, the next level to watch will be the 0.6830 as all the major technical indicators are now hinting at more upside. If the AUD/USD slides below 0.6750, then it would point towards more consolidation ahead.
For now, the important support levels for the AUD/USD are 0.6750 and then 0.6720 followed by 0.6690. On the contrary, the AUD/USD's resistance levels are 0.6805 and then 0.6830.
Looking ahead, the Fed and the RBA decision will be important events to watch as they have the ability to significantly effect the AUD/USD's next direction. A bearish RBA and a bullish Fed will be negative for the AUD/USD while the opposite will be positive for the pair.