FxWirePro: AUD/USD breaks above 21-EMA, Australia CPI inflation hits 32-year high in Q3

Chart - Courtesy Trading View 

AUD/USD was trading 0.26% higher on the day at 0.6409 at around 04:35 GMT. The pair has edged above 21-EMA raising scope for further upside.

Data released by the Australian Bureau of Statistics (ABS) earlier on Wednesday showed Australian Q3 inflation rose more than expected in to a 32-year high.

Australian Consumer Price Index rose 1.8% in Q3, higher than expectations for a rise of 1.6%, and remained steady from last quarter’s figure of 1.8%. 

On an annualized basis, CPI inflation rose 7.3%, more than expectations for growth of 7.3% and the previous quarter’s reading of 6.1%. 

The annual reading was Australia’s fastest growth in annual inflation since 1990. Data likely suggests that the Reserve Bank of Australia may have acted prematurely in toning down its pace of interest rate hikes this month.

The data is likely stoking chances of more interest rate hikes by the Reserve Bank to control rising price pressures.

Major Support Levels: 0.06390 (21-EMA), 0.6357 (20-DMA), 0.63 (200H MA)

Major Resistance Levels: 0.65, 0.6535 (Upper BB), 0.6570 (55-EMA)

Summary: AUD/USD has edged above 21-EMA raising scope for further upside. Technical indicators are turning bullish on the intraday  charts. Major trend is bearish, but decisive break above 21-EMA will change near-term dynamics.