Building on to its momentum above 0.7600 handle, the AUD/USD pair extended the bullish momentum for the fifth consecutive session and has now risen to 10-day highs.
Currently trading at the highest level since Oct. 4, around 0.7680 region, today's release of the minutes from RBA's latest policy meeting, which showed little inclination for further monetary easing in the near future, helped the pair to build on to Monday's recovery momentum from sub-0.7600 handle led by dismal US manufacturing data that seems to have receded fears of immediate Fed rate-hike action and is weighing on the greenback across the board.
Focus now shifts to US CPI print for the month of September, due later during NA session, and will be looked upon for immediate momentum play ahead of Wednesday's key Chinese macro data, quarterly GDP release and industrial production data. Being Australia's largest trading partner and the largest consumer of commodities, Chinese economic data has a lasting effect on commodity-linked currencies – like Aussie.
Technical levels to watch
From current levels, 0.7691-0.7700 region (monthly high) is likely to act as immediate hurdle, which if cleared is likely to boost the pair immediately towards September monthly high resistance near 0.7732 level and further towards multi-month highs resistance near 0.7750 region touched in August.
On the flip side, 0.7650-45 area now seems to protect immediate downside. Failure to hold this immediate support, and a subsequent drop below session low support near 0.7625 level, now seems to drag the pair back below 0.7600 handle towards retesting Monday's low support near 0.7580 region.