The Australian dollar maintains a bullish bias leading up to the release of the US inflation report
On Tuesday morning, AUDUSD remains confined within a narrow trading range, retaining a slight bullish inclination following Monday’s 0.5% climb and a positive indication from the daily close above 0.6597 (the 100-day moving average and Fibonacci 61.8% retracement level of the recent bearish move from 0.6675 to 0.6480).
The Australian dollar received a boost from the uptick in iron ore prices. However, market activity is expected to taper off until the release of the US inflation data on Wednesday, which will offer the US central bank more insight into the timing of potential interest rate adjustments and consequently affect the dollar’s performance.
Near-term support is situated at 0.6597, followed by the daily Kijun-sen at 0.6574, which is anticipated to hold and maintain the bullish bias in the short term, with bulls defending the lower pivot at 0.6552 (the daily Tenkan-sen and the broken Fibonacci 38.2% level).
Initial resistance levels are identified at 0.6623/34 (the Fibonacci 76.4% level and the spike high from March 23), acting as upper barriers. A breach of these levels could expose significant hurdles at 0.6656/67 (the daily cloud top and the high from March 8).
Res: 0.6623; 0.6634; 0.6656; 0.6667
Sup: 0.6597; 0.6574; 0.6552; 0.6524
