AUD/USD jumps to six-week highs Post-CPI Data

The AUD/USD pair has jumped following the key inflation data in the United States. The CPI figures came below expectations. Speculation above smaller rate hikes from the Fed impacted the US dollar, so, the pair hit at 0.6564, the highest level since late September.

Pre-CPI Versus Post-CPI

The US Consumer Price Index (CPI) rose 0.4% in October below the 0.6% of market consensus. The annual reading dropped to 7.7%, the lowest level since January. The numbers sent Wall Street and Treasuries sharply higher.

The expectations of a less aggressive Fed pushed the dollar sharply to the downside and it continues to look vulnerable. The AUD/USD is back above the 0.6520/40 area, which is an important technical zone. While above, more gains seem likely.

Earlier on Wednesday, AUDUSD fell to 0.6390, matching the 20-day Simple Moving Average that is now heading clearly north suggesting that a bottom has been stabilized, at least in the short term. A potential target of the current rally could be seen at 0.6700/10. Before that level resistance levels are located at 0.6615 and 0.6665.