AUD/USD nears recent peak above 0.6500 amid a better market mood

Generally encouraging United States data revived optimism among market players.

Australia will release the July Monthly Consumer Price Index early on Wednesday.

AUD/USD aims to extend its advance beyond the 0.6505 weekly peak.

The AUD/USD pair changed course in the mid-European session, recovering from an intraday low of 0.6470, as the US Dollar (USD) lost its fear-inspired momentum. The greenback advanced late Monday/early Tuesday, as comments from United States (US) President Donald Trump revived concerns about the Federal Reserve (Fed) independence while threatening more tariffs.

American traders, however, shrugged off the dismal mood and Wall Street advances, following negative closes across Asian and European indexes. US data partially helped lift the mood as Durable Goods Orders fell by 2.8% in July, better than the previous- 9.3% and the expected -4%. Additionally, the CB Consumer Confidence index printed at 97.4 in a August easing a revised 98.7 in July, but beating the expected 96.4.

Australia will release the July Westpac Leading Index and the Monthly Consumer Price Index (CPI) for the same month early on Wednesday. Annualized inflation in the country is foreseen at 2.3%, higher than the 1.9% posted in June.

Technical outlook

AUD/USD approaches its weekly peak of 0.6505 ahead of the Asian opening, with a modest near-term bullish bias according to intraday charts. Beyond the mentioned high, the pair has room to extend its advance towards the 0.6570 region, where the pair topped so far in August. Additional advances expose the yearly high at 0.6625. Near-term support, on the contrary, can be found at 0.6470, followed by the 0.6430 price zone.