Hold your horses on that downside break in AUD/USD. The pair looked like it was headed for the dumps but we're seeing a reversal of fortunes now ahead of the US CPI report later in the day.
The dollar is marked lower across the board with losses extending in European morning trade. This comes as equities tick higher and bond yields also continue to climb lower. Are we setting up for a 'peak inflation' mood?
AUD/USD has climbed back up to 0.7000 and a weekly hold above the figure level would at least do buyers some good.
In terms of near-term technicals, the 100-hour moving average @ 0.7032 is the crucial level to watch ahead of the key data release later today.
For now, it's the dollar that is lagging as we see markets reverse some of the moves from the start of the week.
