AUD/USD surges above 0.7350 post-US Inflation figures

• The Australian dollar climbs in tandem with commodity prices, up so far 0.51%.
• Russia-Ukraine talks, stuck with no advance, dampened the market mood.
• AUD/USD Technical Outlook: Remains upwards, boosted by commodity prices, and the upward break of the 200-DMA.

The AUD/USD advance for the second straight day, after Wednesday’s sudden sentiment change amid lack of concrete news of ceasefire or truce on the Russia-Ukraine conflict, as hostilities remain for the sixteenth consecutive day. At the time of writing, the AUD/USD is trading at 0.7338, slightly above Wednesday’s high.

Risk-aversion got back on Thursday, as Russia-Ukraine tussles remain to grab attention. As reported by both sides, Ukraine and Russia talks got nowhere as both countries stayed firm on each of their postures. However, there is still hope of a Putin – Zelensky meeting, but the Russian Foreign Minister Lavrov added they would need more preparations.

In the meantime, the US economic docket featured the Consumer Price Index (CPI) for February, which came at 7.9% y/y, while the so-called Core CPI that excludes volatile items rose by 6.4% y/y, both figures in line with expectations. “Last month’s CPI data does not fully capture the spike in oil prices following Russia’s invasion of Ukraine on February 24, when prices shot up more than 30%,” according to Reuters.

Earlier in the Asian Pacific session, Australia reported Consumer Inflation Expectations for March increased from 4.6% to 4.9%, while Building Permits shrank severely, from 8.2% to -27.9%.

AUD/USD overnight seesawed between 0.7300-30 area, but as commodities rallied, the AUD followed through, jumping near-daily highs around the North American open.

AUD/USD Price Forecast: Technical outlook

The AUD/USD is upward biased, though it is approaching a solid resistance around 0.7370, November 15, 2021, high. On Thursday, the pair jumped from the 200-day moving average (DMA), a bullish signal, though it remains in-sight, close to the spot price, something to be aware of it. Furthermore, Thursday’s daily low touched a ten-month-old downslope trendline, previous resistance/support around 0.7287, causing a jump on the price as buying pressure emerged.

That said, the AUD/USD first resistance would be 0.7370. Breach of the latter would expose the 0.7400 mark, immediately followed by the YTD high at 0.7441, also March 7 daily high.