• AUD/USD extended gains near seven week high on Wednesday as higher commodity prices and improved investor risk appetite supported Australian dollar.
• Iron ore futures have climbed for a sixth consecutive day, buoyed by expectations of increased demand from China. Additionally, oil strengthened amid rising geopolitical tensions in the Middle East.
• Attention now turns to U.S. inflation data, with PPI due Wednesday and CPI Thursday, as markets seek guidance on Fed policy moves next week.
• Analysts expect a +0.3% month-on-month increase and +3.1% year-on-year rise in core CPI. These readings are critical for gauging inflationary pressure and potential Federal Reserve policy adjustments.
• At GMT 03:47, the Australia dollar was up 0.28% to 1.3554 against the US dollar.
• Immediate resistance is located at 0.6615(Higher BB), any close above will push the pair towards 0.6638(Higher BB)
• Support is seen at 0.6547(Sep 8th low) and break below could take the pair towards 0.6517(SMA 20).
Recommendation: Good to buy around 0.6600 with stop loss of 0.6540 and target price of 0.6660
