FxWirePro: AUD/USD consolidating gains above 20-DMA, focus on US CPI data for further impetus

• AUD/USD is trading in a narrow range as markets remain cautious ahead of US CPI data due later in the day.
   
• The Aussie largely muted on upbeat NAB business conditions index which hit a record high in February.
   
• The National Australia Bank's business conditions index moved 3pts higher to a new record high of +21 index points in February, beating the estimated drop to +16 index points from the previous month's figure of +19 index points. 
   
• Aussie extended gains above 20-DMA on Monday's trade as the pair was buoyed by broad-based Greenback selling.
   
• Further, tariff exemption granted to Australia, confirmed over the weekend by the Australian Prime Minister, Michael Turnbull to keep the pair supported. 
   
• Technical indicators are biased higher. RSI has edged above 50 levels and Stochs are showing a bullish momentum. We also see +ve DMI dominance.
   
• Market focus will be on the US inflation figures for further impetus. The CPI data is due at 12:30 GMT. Core CPI is forecast at 1.8% year-on-year.

Support levels - 0.7841 (5-DMA), 0.7838 (20-DMA), 0.7797 (200-DMA)

Resistance levels - 0.79, 0.7893 (38.2% Fib), 0.79, 0.7975

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-holds-above-200-DMA-Aussies-slightly-bid-on-upbeat-trade-data-1190751) is progressing well.

Recommendation: Bias higher, hold for targets.

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