FxWirePro: AUD/USD spikes on monthly inflation data surge

• AUD/USD rose higher on Wednesday after a stronger-than-expected inflation print reinforced bets of a hawkish RBA policy outlook.

•Australian consumer inflation accelerated for a fourth straight month in October, a new data series showed on Wednesday, prompting markets to scale back expectations of further easing and even consider the risk of a rate hike.

• Data from the Australian Bureau of Statistics showed the monthly CPI rose 3.8% year-on-year, the fastest pace in 10 months and above the 3.6% forecast.

•  The trimmed mean measure of core inflation quickened to 3.3% annually in October, up from 3.2% in September.

• Investors sharply pared their expectations for the Reserve Bank of Australia to deliver one final rate cut in May next year, with odds falling to just 8% from 40% previously.

• Immediate resistance is located at 0.6515(50%fib), any close above will push the pair towards 0.6595(61.8%fib).

• Support is seen at 0.6467(Daily low) and break below could take the pair towards 0.6438(38.2%fib).

 Recommendation: Good to buy around 0.6480, with stop loss of 0.6430 and target price of 0.6560