FxWirePro: AUD/USD trades higher on upbeat Australia CPI data, focus on FOMC decision for further impetus

AUD/USD chart on Trading View used for analysis

• AUD/USD trades 0.54% higher on the day at 0.7193 at 0355 GMT, bias higher.
   
• Aussie buoyed after upbeat Australia CPI data, focus now on FOMC decision and Thursday’s US-China trade talks for next direction.
   
• Data released earlier today showed Australia Q4 CPI printed at 1.8% YoY, above expectations at 1.7%. QoQ CPI came in at 0.5%, also beating expectations at 0.4%.
   
• We see some upside on intraday charts. Stochs and RSI are biased higher.
   
• The pair finds stiff resistance at 0.7210 (nearly converged daily cloud and 110-EMA).
   
• Break above 0.7210 resistance will see further upside. Scope then for test of 38.2% Fib at 0.7276.
   
• On the downside, 20-DMA is strong support at 0.7155. Close below will see weakness in the pair.
   
• Renewed doubts over the US-China trade resolution amid charges against China’s Huawei and Fed pause risks weigh on the USD, supporting the pair higher. 

Support levels - 0.7165 (55-EMA), 0.7155 (nearly converged 5 and 20 DMAs)

Resistance levels - 0.7210 (nearly converged daily cloud and 110-EMA), 0.7276 (38.2% Fib)

Recommendation: Stay long on breakout at 0.7210 resistance, SL: 0.7150, TP: 0.7275/ 0.73

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.