This comes as the dollar remains on the softer side for the most part after yesterday's US CPI data here. Risk trades rallied strongly and we are seeing things pick up again with S&P 500 futures now up 0.4% after a flattish start to the day earlier. In turn, AUD/USD is moving higher and looking towards its 100-day moving average (red line) next:
That will mark a key technical resistance point for the pair before looking towards further upside momentum, which could carry it through to the 200-day moving average (blue line), seen at 0.6955 currently.
It's still a bit early to call this as the turning point for the dollar but if the coming inflation readings are able to open up the door for a less aggressive Fed, then that little bit of hope is enough to get markets riled up again surely. This is a market that has been beaten down since the start of the year and is desperate for just about anything they can lay their hands on.
