• AUD/ USD strengthened on Thursday as Australian dollar continued to benefit from July inflation data that topped market forecasts .
• The Australian CPI data exceeded expectations slightly, coming in at 3.5% year-on-year compared to the anticipated 3.4%.
• The CPI figure prompted markets to reassess their expectations for the RBA's first rate cut. The probability of an easing in November decreased 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 0.6820 (23.6%fib), any close above will push the pair towards 0.6853 (Higher BB).
• Support is seen at 0.6767(Aug 27th low) and break below could take the pair towards 0.6750 (50%fib).
Recommendation: Good to buy around 0.6790, with stop loss of 0.6660 and target price of 0.6900
