The Australian dollar hit the highest since 10 March on Wednesday, extending advance into sixth straight day, driven by fresh risk demand as global easing of coronavirus restrictions commenced. Inflation in Australia rose to 2.2% in Q1, beating 2.0% forecast and reaching levels of RBA’s inflation target (2-3%) for the first time since 2014, however, jump is expected to be short-lived due to coronavirus lockdown, which is expected to reflect in Q2.
Bulls are heading towards 100DMA target (0.6566), which guards 200DMA (0.6687).
Overbought stochastic and fading bullish momentum on daily chart have so far been ignored, however, some consolidative action could be anticipated in coming sessions before bulls resume.
Res: 0.6547, 0.6566, 0.6612, 0.6687
Sup: 0.6500, 0.6450, 0.6400, 0.6387
