The Australian dollar rallied after Q3 inflation exceeded expectations.
A bullish MA cross on the daily chart indicates an acceleration in the upward movement. Pullbacks are likely to attract a ‘buy the dips’ crowd.
The pair has been consolidating its recent gains above 0.7450, a former major resistance that has turned into support. A close above 0.7545 may extend the rally to last July’s high at 0.7610.
On the downside, a deeper retracement would test the demand area between 0.7380 and the psychological level of 0.7400.
