FxWirePro: AUD/USD grinds sideways above 200-DMA, US CPI data awaited for impetus

Chart - Courtesy Trading View 

AUD/USD was trading 0.07% lower on the day at 0.6900 at around 11:50 GMT. 

The major is extending sideways grind above 200-DMA support, outlook remains bullish.

Focus now is on the key US Consumer Price Index (CPI) data, due later on Thursday at 13:30 GMT.

Traders reluctant to place any aggressive bets ahead of US CPI report. Rising expectations for smaller Fed rate hikes act as a headwind for the USD .

A slowdown in the US wage growth pointed to easing inflationary pressure. Today's release of the US CPI report will influence the Fed's rate hike path. 

According to CME Group’s FedWatch Tool, a 25 bps rate hike at the Fed’s next event on February 1 looks the most likely scenario.

Technical indicators for the pair point to further upside. Momentum bullish, volatility is high, GMMA indicator shows major and minor trend are bullish.

Support levels - 0.6895 (5-DMA), 0.6831 (200-DMA)

Resistance levels - 0.6938 (Upper BB), 0.7034 (110-week EMA)

Summary: AUD/USD trades with a bullish technical bias. US CPI data is the main catalyst that will drive further price action. Scope for test of fresh multi-month highs above 0.70.