FxWirePro: AUD/USD breaks above 21-EMA, prospects of a hawkish stance from the RBA buoys Aussie

Chart - Courtesy Trading View 

AUD/USD was trading 0.30% higher on the day at 0.7167 at around 05:00 GMT.

The pair is extending gains for the 3rd straight session, outlook is turning bullish.

Price action has shown a break above 21-EMA which was capping upside from many sessions.

The Australian dollar buoyed on expectations of a hawkish stance from the RBA.

Markets have moved to price in more moves by the RBA, with the first move to 0.25% is implied by June. Further increases to 2.5% are priced in by July 2023. 

Yields on Aussie 10-years have surged 25 basis points in four sessions to hit 2.10%, and briefly reached their highest since March 2019 at 2.157%.

Technical indicators are turning bullish. Price action has retraced brief dip below 200H MA. Break above 21-EMA has reinforced upside bias. 

Focus on the US CPI data scheduled later this week for further impetus. Bullish continuation will see test of 110-EMA at 0.7245.