FxWirePro: AUD/USD hits new multi-year high, trades at levels unseen since June 2018, outlook bullish

AUD/USD chart - Trading View 

AUD/USD bulls extend gains above 0.74 handle to hit highest since June 2018, outlook strongly bullish.

The Australian dollar picked up bids in the Asian session today after Consumer Inflation Expectations data and as AU yields turn negative for the first time.

The latest Australian Consumer Inflation Expectations for December remains unchanged at 3.5%, reaffirming belief in the RBA’s measures to combat the virus-led economic weakness.

Risk tone to impact price movements amid worsening virus conditions and as trader’s wait for the key Food and Drug Administration’s (FDA) approval of Pfizer’s covid vaccine.

On the data front, focus shall be on the US Consumer Price Index (CPI) for November. Analysts expected CPI to ease from 1.2% to 1.1% YoY.

Technical bias for the pair is bullish. Strong momentum and rising volatility to drive prices higher. 

The pair is on track to test next major resistance at 78.6% Fib at 0.7573. 5-DMA is immediate support at 0.7434. Bullish invalidation only below 200W MA.