AUD/USD sits at fresh one-week tops ahead of key US macro data
|The AUD/USD pair continued gaining traction through mid-European session and is currently placed at fresh one-week tops, around mid-0.7800s.
The pair shrugged off today's cautious RBA Financial Stability Review report and built on previous session's bullish break above 100-day SMA hurdle, despite a modest US Dollar recovery.
A minor rebound in the US Treasury bond yields helped the greenback to recover early lost ground, but did little to dent demand for higher-yielding currencies - like the Aussie.
Meanwhile, the prevalent positive trading sentiment around commodity space, especially copper, which tends to underpin demand for commodity-linked currencies, remained supportive of the pair's bid tonefor the fourth consecutive session.
It, however, remains to be seen if the pair is able to extend the up-move or runs through some fresh offers at higher level amid some repositioning trade ahead of today's key inflation figures from the US.
• US Sep CPI: Headline prices likely to increase 0.5% overall - Westpac
Apart from the headline CPI, today's US economic docket also features the release of monthly retail sales and Prelim UoM Consumer Sentiment Index, which along with Fedspeaks would help determine the pair's next leg of directional move.
Technical levels to watch
A follow through buying interest beyond 0.7860 level should continue lifting the pair further towards the 0.7900 handle ahead of 50-day SMA hurdle near the 0.7915 region.
On the downside, any pull-back below the 0.7835-25 region now seems find support at 100-day SMA near the 0.7800 handle, which if broken would turn the pair vulnerable to head back towards retesting mid-0.7700s support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.