AUD/USD Price Analysis: Maintains recovery pending US inflation and GDP data.

• AUD/USD advances to near 0.6380 despite strong recovery in US Dollar and bond yields.
• The Australian dollar will remain in suspense before the publication of inflation data for the third quarter.
• The breakout of the descending triangle chart pattern results in wider ticks and high volume.

The AUD/USD pair finds provisional resistance after extending its recovery to around 0.6380 in the early stages of the New York session. The pair is clinging to the recovery despite a strong rally in the US Dollar and US 10-year Treasury yields, showing strength in the Australian Dollar.

Strengthening action is anticipated in the Australian Dollar amid the release of third quarter inflation data, which will be released on Wednesday. According to estimates, consumer inflation increased by 1.1%, compared to an increase of 0.8% in the April-June quarter. At an annualized rate, inflation grew at a slower pace of 5.3%, compared to the 6.0% growth recorded previously. The monthly Consumer Price Index (CPI) accelerated by 5.4% in September, compared to the 5.2% recorded in August.

The Dollar Index (DXY) rises to near 106.00 as investors focus on the US third quarter Gross Domestic Product (GDP), due to be released on Thursday. According to expectations, the US economy grew by 4.2% compared to the 2.1% growth rate recorded previously.

AUD/USD presents a breakout of the descending triangle chart pattern formed on a two-hour scale. The breakout of this chart pattern results in wider ticks and high volume. The 20-period exponential moving average (EMA) at 0.6340 is showing an uptrend.

The Relative Strength Index (RSI) (14) is moving into the bullish range of 60.00-80.00, indicating that bullish momentum has been activated.

AUD/USD two-hour chart