• Aussie bulls have sensed a decent buying interest around the 20-EMA at 0.6500.
• A recovery in the cheerful market mood has trimmed the DXY’s appeal.
• Declining price growth in China has also supported the antipodean.

The AUDUSD pair has refreshed its day’s high at 0.6518 led by tailwinds of a decline in the US dollar index (DXY) and China’s inflation data. The mighty DXY is declining toward Tuesday’s low at 109.35 as the positive risk profile has strengthened again.

The 10-year US Treasury yields remain steady around 4.14% amid equal odds for the 50 and 75 basis points (bps) rate hike by the Federal Reserve (Fed) in its December monetary policy, as per the CME FedWatch tool.

China’s inflation rate has remained lower at 2.1% than the estimates of 2.4% and the prior release of 2.8%. This has triggered expectations of monetary policy easing by the People’s Bank of China (PBOC). Being a leading trading partner of China, the antipodean will get strengthened.

On an hourly scale, the asset has rebounded after testing the demand zone placed in the 0.6500 area. The 20-period Exponential Moving Average (EMA) at 0.6505 has acted as major support for the counter. Also, the 50-EMA at 0.6473 is continuously advancing, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to cross the 60.00 hurdle. An occurrence of the same will trigger an upside momentum.

Should the asset break above Tuesday’s high at 0.6551, Aussie bulls will drive the asset towards the round-level resistance at 0.6600, followed by September 21 high at around 0.6700.

On the flip side, the Greenback bulls will regain control if the asset drops below Monday’s low at 0.6406, which will drag the asset towards October 31 low at 0.6368. A slippage below the latter will exploit the asset to display more downside to near November 3 low at 0.6272.

AUDUSD hourly chart