- A general decline in the dollar propels AUD / USD higher.
- The pair faces the next resistance around 0.7275.
- Inflation in the US rises to 7%, the largest increase in nearly 40 years.
The USD is falling sharply amid higher stock prices and following the December US CPI report The AUD/USD it jumped to 0.7266 during the US session, reaching the highest level in a week. It remains at the top of the range, with the bullish momentum intact.
The falling dollar and the rebound in commodity prices are pushing the AUD / USD forward. The DXY is falling 0.40% to 95.20, the lowest level since November 15. The annual inflation rate in the US reached 7%, the highest since 1982. The figure did not push US yields to new lows and weighed on the dollar.
AUD / USD Likely to Test Recent Highs
The pair is approaching the 0.7275 / 80 zone which capped the upside in late December and early January. A bullish breakout would strengthen the positive outlook for the Aussie. The next level to watch is the 100-day simple moving average at 0.7285.
If AUD / USD fails to break through the mentioned resistance, a pullback towards the 20-day moving average at 0.7200 seems likely.
Technical levels
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