FxWirePro: AUD/USD climbs to 3-week high after hotter-than-expected inflation data

• AUD/USD jumped to a three-week high on Wednesday after a stronger-than-expected core inflation reading prompted markets to nearly rule out a rate cut at next week’s    RBA meeting.  

• Australian consumer prices rose at their fastest pace in over two years during the September quarter, driven by higher housing and travel costs .

• The Australian Bureau of Statistics reported that consumer prices rose 1.3% in the third quarter, surpassing expectations of a 1.1% gain.

•Annual CPI inflation accelerated to 3.2% from 2.1%, driven in part by base effects and the partial unwinding of earlier energy rebates.

·  Earlier this week, RBA Governor Michele Bullock noted that a 0.9% core inflation outcome would be a "material miss." Following the data, investors drastically reduced expectations for a near-term rate cut.

• Immediate resistance is located at 0.6614 (38.2%fib), any close above will push the pair towards 0.6631(Higher BB).

• Support is seen at 0.6547(50%fib) and break below could take the pair towards 0.6538(SMA 20).

 Recommendation: Good to buy around 0.6580, with stop loss of 0.6500 and target price of 0.6660