FxWirePro: AUD/USD snaps two-day downtrend, fresh optimism over Ukraine-Russia crisis buoys

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.61% higher on the day at 0.7215 at around 05:30 GMT

Previous Week's High/ Low: 0.7227/ 0.7086

Previous Session's High/ Low: 0.7227/ 0.7164

Fundamental Overview:

The Australian dollar finds support amid fresh optimism over Ukraine-Russia tussle.

A diplomatic meeting between US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov is the ray of hope to witness de-escalation of tensions.

The People’s Bank of China (PBOC) kept its benchmark rate unchanged at 3.7% in the latest monetary policy meeting as widely expected.

The prospect of an aggressive tightening by the Fed persists as inflation remains hot. Focus now on the Fed's favoured measure of core inflation, due later this week.

US core inflation is forecast to show an annual rise of 5.1% - the fastest pace since the early 1980s.

Technical Analysis:

- AUD/USD is testing daily cloud resistance

- Price action is extending gains above 200-week MA

- Momentum indicators are bullish, RSI is now above 50 mark

- MACD and ADX support upside in the pair

Major Support and Resistance Levels:

Support - 0.7183 (5-DMA), Resistance - 0.7235 (110-EMA)

Summary: AUD/USD trades with a bullish bias. The pair is on track to test 110-EMA resistance. Break above will fuel further upside.