AUDUSD – jump on higher than expected CPI was capped by 200DMA, all eyes on Fed

AUDUSD rose to one-month high on Wednesday, lifted by higher than expected inflation in the third quarter that boosted expectations for RBA rate hike in the next policy meeting.

Consumer prices advanced by 1.3% in Q3 compared to 0.6 in Q2 while annualized CPI was unchanged at 3.9%.
Core inflation was up by 3.7% from previous quarter’s 3.6%.
The data significantly lifted bets for 25 basis points hike from current 4.6% in the policy meeting next
week.
However, Aussie dollar’s data-inspired rally was capped by 200DMA (0.7054) with subsequent pullback signaling that advance was likely to be short-lived and overshadowed by today’s Fed policy decision.
The US central bank is widely expected to keep rates unchanged, but market observers anticipate a hawkish hold scenario that would provide fresh support to the US currency.

Technical picture remains bullishly aligned on daily chart, as positive momentum continues to strengthen,
but MAs in mixed setup, partially offset.
Close above cracked 100DMA (0.7031) will be minimum requirement to keep near-term action biased higher, but only firm break of 200DMA and nearby 50% retracement of 0.7238/0.6994 (0.7065) would bring bulls fully in play.

Caution on failure at 100DMA that would expose lower breakpoint at 0.7000 (psychological / 10DMA).

Res: 0.7054; 0.7065; 0.7075; 0.7100
Sup: 0.7023; 0.7010; 0.7000; 0.6981