• AUD/USD jumped to a three-week high on Wednesday after a stronger-than-expected core inflation reading prompted markets to nearly rule out a rate cut at next week’s RBA meeting.
• Australian consumer prices rose at their fastest pace in over two years during the September quarter, driven by higher housing and travel costs .
• The Australian Bureau of Statistics reported that consumer prices rose 1.3% in the third quarter, surpassing expectations of a 1.1% gain.
•Annual CPI inflation accelerated to 3.2% from 2.1%, driven in part by base effects and the partial unwinding of earlier energy rebates.
· Earlier this week, RBA Governor Michele Bullock noted that a 0.9% core inflation outcome would be a "material miss." Following the data, investors drastically reduced expectations for a near-term rate cut.
• Immediate resistance is located at 0.6614 (38.2%fib), any close above will push the pair towards 0.6631(Higher BB).
• Support is seen at 0.6547(50%fib) and break below could take the pair towards 0.6538(SMA 20).
Recommendation: Good to buy around 0.6580, with stop loss of 0.6500 and target price of 0.6660
