AUD/USD takes-out 0.7600 on solid China CPI

The bid tone behind the AUD gathered steam following the release of solid Chinese CPI report, sending the AUD/USD pair further into positive territory to test 0.76 handle.

AUD/USD cheers upbeat Chinese data

Currently, the AUD/USD pair jumps +0.41% at 0.7600, having posted fresh 3-day highs at 0.7603 last minutes. The Aussie emerges one of the top gainers in Asia so far this session, with the latest stronger Chinese inflation figures providing extra legs to the solid rebound staged by the major from 3-month troughs.

The Chinese inflation showed the first increase in 55 months, coming in at 1.9% y/y in Sept versus +1.6% expectations and 1.3% previous.

Markets appear to have already priced-in a better China CPI print, as risk-on remains in full steam, underpinning the bullish tone in AUD/USD.

Meanwhile, the AUD bulls remained unperturbed by the RBA Financial Stability Review (FSR) released earlier on the day, and markets now digest the Chinese macro news ahead of the US retail sales data due later in the NA session.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7618 (20-DMA) above which gains could be extended to the next hurdle located 0.7675 (daily R3) and 0.7693 (Oct 4 high). On the flip side, the immediate support located at 0.7501 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7474 (daily S2) and below that at 0.7450 (psychological levels).