FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

AUD/USD was trading 0.29% higher on the day at 0.7098 at around 11:25 GMT. The pair is extending previous session's gains and break above the daily cloud.

The prevalent risk-on mood supports the pair higher. Weaker-than-expected US CPI report pushed back expectations for a more aggressive policy tightening by the Fed and boosted investors' confidence.

Recession fears, the overnight hawkish remarks by Fed officials could limit the USD losses and limit upside in the pair.

Going forward, major focus will be on the US Michigan Consumer Sentiment Index (CSI) data, which is due on Friday. 

The sentiment data is expected to show a consecutive improvement to 52.2 from its prior release of 51.5, after slipping to 50 for the first time in the past 20 years.

Technical indicators for the pair are bullish. GMMA indicator shows minor trend is bullish. Momentum is bullish and volatility is high.

MACD and ADX support upside in the pair. Price action is above cloud and is on track to test 200-DMA at 0.7150.