- AUD/USD extends gains, trades 0.20% higher on the day, bias higher.
- The major is currently hovering around 50% Fib and is on track to test 50-DMA at 0.7495.
- China's consumer price index (CPI), a main gauge of inflation, rose 1.9 percent year on year in June, compared with 1.8 percent for May, data from the National Bureau of Statistics (NBS) showed Tuesday.
- China Consumer Price Index (MoM) came in at -0.1% below forecasts (0%) in June.
- Australia National Australia Bank's Business Confidence registered at 6, below expectations (8), while Business Conditions came in at 15, below expectations (18) in June.
- Technical indicators support further bullishness in the pair. Break above 50-DMA will add credence to bullish divergence observed on RSI and Stochs.
- Scope then for test of 100-DMA at 0.7611. We see minor weakness on break below 21-EMA at 0.7436.
Support levels - 0.7436 (21-EMA), 0.7428 (5-DMA)
Resistance levels - 0.7495 (50-DMA), 0.7555 (cloud base)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-finds-stiff-resistance-at-21-EMA-bullish-divergence-keeps-scope-for-upside-1398476) has hit TP1.
Recommendation: Watch out for break above 50-DMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 184.298 (Bullish), while Hourly USD Spot Index was at -42.0434 (Neutral) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
