AUD/USD daily chart
This carries over from yesterday’s post here and all the points made then are still very much in play in trading today. The pair is still looking poised to take a run at the April and May highs, with the daily resistance region around 0.6793-00 one to watch.
The May high comes in at 0.6818 so that will mark the “official” breaking point. However, regardless of what the technicals might suggest, it will come down to what the US CPI data first has to say and then the Fed tomorrow. As mentioned in the linked post, there is a series of hurdles that will test AUD/USD sentiment throughout the week and the first will come later today.
For now, buyers are looking poised and staying in the driver’s seat. And if we do see a softer set of inflation numbers later, or something that convinces markets that the Fed will not hike tomorrow, that should be a nod for AUD/USD to potentially crack the resistance levels outlined above.