AUD/USD inter-markets: rallies in tandem with Copper, Aus Q3 CPI eyed

The AUD bulls have shown some solid strength so far this session, taking AUD/USD above the key technical resistance placed at 0.7640 last hours.

The Aussie extended its gradual ascent from below 0.76 handle and caught a fresh bid-wave during the European session, mainly driven by risk-on market profile triggered by broad based buying seen in the higher-yielding/ risky assets such as equities, commodities etc. The CBOE Volatility Index (VIX), a fear gauge, drops over 1% to trade below 13 handle, suggesting that sentiment remains risk-friendly.

Further, retreat in the US dollar against its main competitors from multi-month tops, despite higher treasury yields, also collaborated to the upside bias in the AUD/USD pair. However, the latest leg higher in the Aussie is mainly driven by a strong rally in copper prices, with the Comex copper futures up more-than 2% in today’s trading so far.

All eyes now remain on the US consumer confidence figures due later on Tuesday, while the spot will get significantly influenced by the Australian Q3 inflation report due tomorrow in the Asian morning.