• AUD/USD eased from ten month high on Thursday as investors globally awaited a reading on U.S. inflation.
•U.S. producer prices unexpectedly fell in August due to lower trade services margins and modest increases in goods costs.
•Investors’ attention is fixed on U.S. CPI figures due at 12:30 GMT. Projections indicate a 0.3% monthly increase in August, up from July’s 0.2%, while the annual rate is seen advancing to 2.9% from 2.7%.
• The Australian dollar has gained support from rising prices of key commodity exports, particularly iron ore and gold
• Iron ore climbed above $107 per metric ton this week, marking its highest level since late February, while gold continued its surge to fresh record highs.
• Immediate resistance is located at 0.6622(23.6%fib), any close above will push the pair towards 0.6659(Higher BB)
• Support is seen at 0.6581(Sep 10th low) and break below could take the pair towards 0.6522(SMA20).
Recommendation: Good to buy around 0.6590 with stop loss of 0.6540 and target price of 0.6660
