AUD/USD rebound stalls below 0.6600 with US inflation looming

• The Australian Dollar rebound is lacking followthrough at 0.6600.
• Dollar weakness fades as we head into the US CPI release.
• AUD/USD: Intraday charts show a symmetrical triangle pattern.

The Australian Dollar’s recovery from Monday’s lows has found resistance at the 0.6600 level, leaving the pair in no man’s land as the market braces for the release of November’s US CPI figures.

AUD bounced up on higher commodity prices and softer US yields

The Aussie has drawn some support from the higher Iron ore prices, Australia’s main export. Beyond that the lower US treasury yields, as the dust from the strong NFP report settled, have weighed on the US Dollar.

The focus today is on the US CPI data, which is expected to have eased to a 3.1% year-on-year rate in November, from 3.2% in October. The Core CPI is seen growing at a steady 4% yearly pace.

These figures will frame Wednesday’s Fed’s Decision and, with the market increasingly eager to know the timing of the bank’s pivot, any surprise today might have a significant impact on USD crosses.

AUD/USD is forming a triangle pattern

The technical picture is mixed, which results in a symmetrical triangle pattern in the last two weeks. Resistance at 0.6615 is closing the path towards the December 3 peak at 0.6690 while support levels remain at 0.6555 and 0.6520.

Technical levels to watch