The aussie leads gains going into European trading
AUD/USD is trading up around 0.7525 currently as buyers are keeping a more bullish near-term bias, holding any nudge towards its 100-hour moving average @ 0.7493 currently since trading yesterday and capitalising on the Q3 CPI data earlier.
The trimmed mean reading showed stronger inflation pressures than expected but considering that wage growth remains unimpressive, it may be a tough one for the RBA to get behind and stray away from the 'transitory' narrative at this point.
Policymakers have maintained that 2024 is the earliest that they would be targeting any rate hikes and I don't see any change to that view as of yet. That said, more surprise beats to inflation readings will heap pressure on the RBA so there's that.
The aussie is keeping higher against the dollar but still holding below the highs last week @ 0.7546 and also below its 200-day moving average @ 0.7558:
Keeping below the latter is still somewhat suggestive that the upside momentum is relatively contained as buyers need to break above that to open up the next leg higher.
The dollar may not be in the best of spots but aussie buyers may need a little more impetus to break through the key resistance level pointed out.
Elsewhere, aussie sentiment is also buoyed (kiwi sentiment weighed down as such) by a shove higher in AUD/NZD towards its 100-day moving average once again:
The pair is in the hunt of a fifth straight day of gains after the early October rally fizzled out upon testing 1.0600 but buyers are still staying in the game and the 100-day moving average @ 1.0524 will be a key level to watch in the days ahead as such.
