AUD/USD surges to weekly high ahead of US economic releases

The AUD/USD pair extended strong Chinese inflation-led up-move beyond 0.7600 handle and has now risen to a fresh weekly high level.

Currently trading at 7-day high level around 0.7630 region, the pair is benefitting from Friday's release of Chinese PPI print, which eased worries of economic slowdown in the world's second-largest economy. The pair remained unaffected by broad based greenback strength, as measured by the overall US Dollar Index, which regained traction on rising odds of an eventual Fed rate-hike action by the end of this year, with CME group's FedWatch Tool indicating 60.0% probability of such an action in December. 

Next on tap would be US economic data featuring the release of monthly retail sales, PPI and Preliminary University of Michigan Consumer Sentiment for the month of October. Later during NY trading session, the Fed Chair Janet Yellen's speech would be looked upon for fresh clues over the timing of next Fed rate-hike action and might provide fresh impetus for the pair's next leg of momentum. 

Technical levels to watch

From current levels 0.7645 (Oct. 5 high) seems to act as immediate resistance above which the upward trajectory is likely to get extended towards 0.7670-75 horizontal resistance ahead of 0.7700 psychological mark.

On the flip side, 0.7600 handle now seems to protect immediate downside, which if broken is likely to accelerate the slide towards 0.7585 intermediate support before the pair eventually drops back to 0.7600 handle.