AUD/USD Hits Session High as Risk Appetite Surges on CPI Data
Better-than-expected CPI and Fed Chair Warsh's testimony spark risk-on flows, driving AUD/USD to 0.6991 with key resistance just ahead.
AUD/USD is one of the hottest trades in the session right now. The pair surged to a fresh intraday high of 0.6991 before pulling back slightly to hover around 0.6987. That move puts it right at a critical technical test — the 38.2% Fibonacci retracement of the drop from the May 29 high, which lines up almost perfectly with a mid-June swing area near 0.6993. That's your line in the sand.
The fuel behind the move? A one-two punch of cooler-than-expected CPI data and Fed Chair Warsh's ongoing Capitol Hill testimony. US equities love it — the NASDAQ is ripping roughly 0.80% higher and the S&P is up over 0.37%. When US stocks rally hard, risk-sensitive currencies like the Aussie follow. Simple as that.
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Here's your roadmap if bulls can clear 0.6993: the next stop is a descending trendline sitting near 0.7011, and beyond that the 50% retracement of the May 29 decline comes in at 0.7033. Those are your upside targets if momentum holds. But don't ignore the downside setup — the old resistance zone between 0.6963 and 0.6977 just flipped to support. Lose that level and the bull case gets a lot uglier in a hurry.
The bottom line: AUD/USD is at a decision point. A clean break and hold above 0.6993 opens the door to 0.70 and beyond. A failure here and a slide back under 0.6963 tells you the bounce was just noise. Watch those levels closely into the close.
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