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FxWirePro: AUD/USD edges higher as US CPI looms large

• AUD/USD edged higher on Wednesday  as the greenback's bull run took a breather ahead of US September inflation data  .

•   US headline CPI is expected to rise 0.6% month-on-month in September, accelerating from 0.4% in August, while annual inflation is forecast to increase to 3.6%.

• The inflation report could influence market expectations for the Fed’s next policy move, with futures markets currently pricing in a 23.8% probability of a rate hike at the October 28 meeting.

• Investors are also looking ahead to Australia’s September employment report, due Thursday, with economists expecting employment to increase by 20,000 after the previous reading .

•Unemployment rate which unexpectedly rose to a five-year top of 4.6% in August. Forecasts are for a steady outcome, so any further increase say to 4.7% would strengthen the case against a rate rise in November.

• Immediate resistance is located at 0.7008(SMA20), any close above will push the pair towards 0.7049(50%fib).

• Support is seen at 0.6969(38.2%fib) and break below could take the pair towards 0.6892(Lower BB ).

 Recommendation: Good to sell around 0.7000, with stop loss of 0.7070 and target price of 0.6930

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