Aussie dollar keeps bullish bias ahead of US inflation report

AUDUSD is trading within a narrow range on Tuesday morning but keeps slight bullish bias following Monday’s 0.5% advance and a positive signal on daily close above 0.6597 (100DMA / Fibo 61.8% of 0.6675/0.6480 bear-leg).

Aussie dollar was boosted by rise in iron ore, but markets are likely to reduce the speed until release of US inflation data on Wednesday, which will provide more information for the US central bank about the timing of the first rate cut and impact the dollar.

Immediate support lays at 0.6597, ahead of daily Kijun-sen (0.6574), which should hold and keep near-term bias with bulls, guarding lower pivot at 0.6552 (daily Tenkan-sen / broken Fibo 38.2%).

Initial resistances at 0.6623/34 (Fibo 76.4% / Mar 23 spike high) mark upper pivots, violation of which to expose key barriers at 0.6656/67 (daily cloud top / Mar 8 high).

Res: 0.6623; 0.6634; 0.6656; 0.6667
Sup: 0.6597; 0.6574; 0.6552; 0.6524