That comes after the softer US CPI data yesterday and with equities sentiment also bolstered by it and tech stocks, we are seeing the aussie and kiwi lead gains in trading today. AUD/USD is up 0.8% to 0.6830-40 levels currently as buyers are eyeing the June high near 0.6900 next:
At first, the break higher yesterday got checked back ahead of the US CPI data. But after the inflation numbers, we are seeing buyers breathe a sigh of relief and cast aside their doubts with a strong push above key resistance from the 100 (red line) and 200-day (blue line) moving averages.
And now, we are seeing those gains extend with the June high near 0.6900 in focus again. A break above that will tee up a push towards 0.7000 next for the pair. And so long as the dollar continues to falter across the board while stocks are able to keep more buoyed, it should be much of a hurdle to see an extended move towards that mark in the days ahead.
