• AUD/ USD hit nineteen month high on Wednesday as China's aggressive stimulus package provided the latest shot in the arm for risk appetite.
• China's recent announcement of support measures, including significant rate cuts and assistance for its stock market, encouraged investor sentiment.
•On the data front, Australia's monthly consumer price index (CPI) report indicated a 0.2% drop in August, bringing the annual rate down to 2.7% from 3.5%.
• Core inflation eased to 3.4% from 3.8%, but crucially remained above the RBA's target band.
• Immediate resistance is located at 0.6895(23.6%fib), any close above will push the pair towards 0.6922(Higher BB).
• Support is seen at 0.6827 (38.2%fib) and break below could take the pair towards 0.6798(Sep 23rd low).
Recommendation: Good to buy around 0.6900, with stop loss of 0.6780 and target price of 0.6985.
