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FxWirePro: AUD/USD rebounds from multi-month lows, Dragonfly Doji raises scope for upside

Chart - Courtesy Trading View 

AUD/USD was trading unchanged at 0.6275 at around 16:40 GMT, outlook bearish.

The pair has bounced off from multi-month lows at 0.6169 hit earlier on the day.

A Dragonfly Doji formation on the daily candle raises scope for further upside in the pair.

The US dollar rose sharply immediately after upbeat September US CPI report that showed higher-than-expected readings. 

Data released earlier on Thursday showed US Consumer Price Index rose 0.2% in September above the 0.1% of market consensus. The annual core rate hit a new decade high at 6.6%.

The dollar jumped as US yields soared to fresh multi-year highs. However, the greenback lost momentum with a rebound in equity prices. 

Major technical bias for the pair is still bearish. Upside remains capped at 5-DMA. Decisive break above could see test of 21-EMA. 
 

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