AUD/USD (current price: 0.7680)
The Australian Dollar had a strong session on Tuesday, and the currency got sharply higher today in early trading, as the CPI came in at 0.7% compared to the expected number of 0.5%. The rebound in the Chinese Yuan and precious metals helped the Aussie yesterday, although the decline in the price of oil, and the late-day fall in global stocks might weigh on the currency later today. The pair shot higher towards its previous highs after three days of losses.
Our assessment: AUD/USD regained its prior relative strength yesterday, but the resistance zone near 0.77 stopped the pair several times before, and the continued rally of the USD might push the Aussie lower.
