AUD/USD extending gains post-US data

The AUD/USD preserved its upward momentum following the US economic releases as the US Dollar Index is having a difficult time moving above 101.50 before the FOMC decisions. At the moment, the AUD/USD is up 0.41% at 0.7590.

According to the latest report published by U.S. Bureau of Labor Statistics, the CPI for all items, less food and energy rose 2.2% over the last 12 months; this was the fifteenth straight month the 12-month change remained in the range of 2.1 to 2.3%. Additionally, U.S. retail and food services sales for February 2017 were $474.0 billion, an increase of 0.1% from the previous month, and 5.7% above February 2016.

Furthermore, the business activity continued to grow at a solid clip in New York State, as the headline general business conditions index edged down two points to 16.4, still bettering the forecasts. 

Technical outlook

The AUD/USD is facing the first resistance at 0.7600/10 (psychological level/50-DMA/20-DMA), ahead of 0.7632 (Mar. 7 high), and 0.7700 (psychological level/Mar. 1 high). On the downside, the first support is aligned at 0.7515 (Fib. 38.2% of Jan. to late Feb. uptrend) followed by 0.7495 (100-DMA) and finally 0.7450 (Fib. 50%).