Chart - Courtesy Trading View
AUD/USD was trading 0.09% higher on the day at 0.6757 at around 05:35 GMT.
The pair is consolidating break above 110-EMA and daily cloud, scope for further gains.
The International Monetary Fund (IMF), in its annual review, said “Australia should continue to tighten monetary and fiscal policy to contain inflation.
Investors stay on a cautious footing amid rising geopolitical risks as concerns loom over missile attack on Poland.
Data released on Tuesday showed US Producer Price Index (PPI) for October eased to 8.0% YoY versus market forecasts of 8.3% and the downwardly revised prior of 8.4%.
The monthly figure reprinted the 0.2% prior (revised from 0.4%) while easing below 0.5% expectations.
Further, the Federal Reserve Bank of New York's Empire State Manufacturing Index jumped to 4.5 in November from -9.1 in October and the market expectation of -5.
Softer data stoke receding hawkish bets at the US central bank’s next move in December. Focus now on US Retail Sales for impetus.
US Retail Sales for October scheduled at 13:30 GMT later in the NY session are expected to rise to 1.0% versus 0.0% prior.
Major Support Levels:
S1: 0.6707 (5-DMA)
S2: 0.6694 (110-EMA)
Major Resistance Levels:
R1: 0.6936 (55-week EMA)
R2: 0.6949 (200-DMA)
Summary: AUD/USD trades with a bullish technical bias. The pair is poised for further upside. Weakness only below daily cloud.
