AUD/USD PRICE PREDICTION: LOOKS TO BUILD ON MOVE BEYOND 200-DAY SMA/0.6600 AHEAD OF US PPI
- AUD/USD prolongs its one-week-old uptrend and climbs to a three-week top on Tuesday.
- The RBA’s hawkish tilt remains supportive amid subdued USD demand ahead of US PPI.
- The technical setup favors bulls and supports prospects for a further appreciating move.
The AUD/USD pair attracts some follow-through buying for the second successive day on Tuesday and climbs to a fresh three-week top during the early part of the European session. Spot prices currently trade around the 0.6600 mark, with bulls looking to build on the momentum beyond the very important 200-day Simple Moving Average (SMA) resistance.
Against the backdrop of the Reserve Bank of Australia's (RBA) hawkish stance, a stable performance across the global equity markets is seen lending some support to the risk-sensitive Australian Dollar (AUD). The US Dollar (USD), on the other hand, struggles to gain any meaningful traction amid expectations for bigger interest rate cuts by the Federal Reserve (Fed). This turns out to be another factor acting as a tailwind for the AUD/USD pair, though the upside potential seems limited ahead of the crucial US inflation figures.
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