Today, the AUD/USD pair has reached the resistance level in the 0.7000 area, resulting in investors opening short positions in the correction.
On January 11, the Q4 consumer price index was released at a dangerously high level of 7.3% YoY. December inflation data from TD Securities was released today: although the indicator fell from 1.0% to 0.2% MoM, it accelerated from 5.2% to 5.9% YoY, which could push the Reserve the Bank of Australia (RBA) to further tighten monetary policy, as a result of which, after a slight corrective decline, quotes may continue to grow within a long-term uptrend with the target at 0.7130.
A strong support level from which new purchases can be considered is at 0.6840 and at the trend line at 0.6670.
The medium-term trend is upwards. Last week the price broke the target zone 4 (0.6929–0.6909), and the next target is zone 5 (0.7129–0.7109). The key trend support is shifting to the area of 0.6819–0.6799, and if this area is reached, new long positions can be considered with the target at the current week's high at 0.7016.
Resistance levels: 0.7000, 0.7130, 0.7275. | Support levels: 0.6840, 0.6670.