AUD/USD opened +2.0% @ 0.6508 after USD was slammed in wake of softer US CPI nL1N3CF2NJ

It came under pressure early Asia as longs took profit above 0.6500

It eased to 0.6484 at one stage before buyers stepped in

There was a muted reaction to Aus Q3 wage data as it was on expectations nAZN1EFP1O

AUD/USD recovered late when China IP and retail sales beat expectations nB9N3C900H

Heading into the afternoon the AUD/USD is trading around 0.6500/05

Resistance is at 0.6520/25 where it has topped four times since mid-August

A 0.6525 break targets major resistance at 0.6580/0.6600

The 50% retracement of July-Oct fall is @ 0.6583 and 200-day MA is @ 0.6598

Support is at the 100-day MA at 0.6491 and 10-day MA at 0.6438

Bias is for higher as Fed-RBA expectations diverge in favour of AUD

Higher equity and commodity prices also supporting AUD/USD sentiment

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