The AUDUSD moved lower after the CPI data (and the dollar moved higher), but the trend has reversed and the price has snapped back to the upside.
The price has just reached a new session high and in the process is testing a swing area between 0.7368 and 0.7375. Yesterday the price did extend above that area to a high of 0.7384, but quickly failed and rotated back to the downside.
The current price is trading at 0.7374. There is some stall within the swing area - at least for now.
A move above the aforementioned levels will have traders looking toward the swing high going back to September 10 at 0.74095. Just above that is the falling 100 day moving average at 0.74164.
Hold resistance here and we could easily see a rotation back lower as the market still struggles with a directional bias.
The move to the upside comes despite a rotation lower the Dow and S&P stock indices. However, like the forex market, the stocks are trading with up and down volatility.