The Australian dollar weakened after the CPI fell short of expectations in Q2. A rally above the supply zone around 0.6960 forced more sellers to cover their bets and took the heat off the aussie. 0.6980 is the immediate resistance and a bullish breakout could extend the rally above the daily resistance at 0.7060. But first, the pair needs to consolidate its recent gains to build up momentum. 0.6880 is a fresh support. Further down, 0.6800 at the base of the breakout is a key level to keep the current rebound intact.
