• AUD/USD firmed on Tuesday as a revival in risk sentiment and higher copper prices supported Australian dollar.
• The commodity-heavy currency is widely viewed as a liquid proxy for global risk appetite, as its movements tend to mirror shifts in investor sentiment.
• Copper prices hit record highs in London (CMCU3) and Shanghai as supply concerns intensified after a strike at a Chilean mine, with U.S. Comex copper also reaching an all-time high on Monday.
• Domestically, attention turns to Australia’s November CPI due Wednesday, expected to rise 3.65% year-on-year, slightly lower than October’s 3.8%..
•The trimmed mean measure of core inflation is expected to remain at 3.3%, reinforcing concerns that fourth-quarter inflation will stay uncomfortably high.
• Immediate resistance is located at 0.6730(23.6%fib), any close above will push the pair towards 0.6745 (Higher BB).
• Support is seen at 0.6662 (SMA 20) and break below could take the pair towards 0.6646(38.2%fib)
Recommendation: Good to buy around 0.6700, with stop loss of 0.6630, and target price of 0.6760
