The high earlier hit 0.6741 on the day before the pair is now trading at flat levels at around 0.6685 as dollar bears are being checked back ahead of the US CPI data. The greenback looked like it was poised for a meaningful break across the board but traders seem to be taking the more rational step in waiting until after the inflation numbers.
As you can see with the chart above, the pair did look like it was eyeing a technical break higher but is now holding back below key resistance levels again.
The 100 (red line) and 200-day (blue line) moving averages continue to be the key resistance region that buyers need to break, in order to justify the next leg higher in AUD/USD. That region now sits at 0.6680-98, so be mindful of that ahead of the daily close today.
For buyers, breaking above that will see the upside momentum resume after the fall in the second-half of June. And that will likely be accompanied by further dollar weakness elsewhere, allowing for the potential to eye the June high again near 0.6900.
But if the dollar is able to take heart from the US CPI data later, then sellers will continue to keep poised around the key resistance levels highlighted and perhaps try to work towards testing short-term support near 0.6600 again.
