FxWirePro: AUD/USD breaks into daily cloud, eyes 110-EMA

Chart - Courtesy Trading View 

AUD/USD was trading 0.40% higher on the day at 0.6645 at around 05:40 GMT.

The pair is extending previous session's gains, break into daily cloud has raised scope for further gains.

Data released on Thursday showed the US Consumer Price Index (CPI) for October declined to 7.7% YoY, the lowest since last March, versus 8.0% expected and 8.2% prior. 

More importantly, the Core CPI fell to 6.3% compared to 6.5% market forecasts and 6.6% previous readings.

Fall in October inflation numbers have raised the scope for an easy Fed rate hike in December, depressing the dollar across the board.

That said, the latest surge in China's covid numbers keep runaway gains in the antipodeans in check.

Focus will be on today’s first readings of the US Michigan Consumer Sentiment Index (CSI) for November, expected 59.5 versus 59.9 prior.

Also, Sunday’s meeting between US President Joe Biden and Japan’s Prime Minister (PM) Fumio Kishida will be watched for clear directions.

Support levels - 0.66, 0.6535 (converged 5-DMA and 55-EMA)

Resistance levels - 0.6691 (110-EMA), 0.6749 (Cloud top)

Summary: AUD/USD trades with a bullish bias. 110-EMA is immediate resistance at 0.6642. Break out of daily cloud will fuel further gains.