FxWirePro: AUD/ USD maintain upside momentum, eyes 0.6900 level

• AUD/ USD strengthened   on Wednesday   after data Australian inflation slowed to a four-month low in July .

• According to data from the Australian Bureau of Statistics released on Wednesday, the Consumer Price Index (CPI) increased by 3.5% year-on-year in July, down from 3.8% in June.

• The CPI figure of 3.5% for July, slightly above the forecast of 3.4%, led markets to adjust their expectations for the RBA’s first rate cut. The likelihood of an easing in November shifted to 48.4%, down from the previous 58%.

• Technical highlight upside risks for AUD/ USD, with momentum studies, 5, 10 and 21 DMAs tracking north.

• Immediate resistance is located at 0.6801 (23.6%fib), any close above will push the pair towards 0.6851 (Higher BB).

• Support is seen at 0.6764(Aug 27th low) and break below could take the pair towards 0.6731 (50%fib).

 Recommendation: Good to buy around 0.6790, with stop loss of 0.6660 and target price of 0.6900