AUD/USD Price Analysis: Struggles to extend rally towards 0.6520

• AUD/USD points higher amid a risk-friendly environment.
• The DXY is facing an intense sell-off due to easing consumer inflation in the US.
• The AUD/USD pair aims to rise above the immediate resistance drawn at 0.6520.

The AUD/USD pair is facing pressure around 0.6520 late in the European session. The pair’s recovery stalls as investors await US retail sales data for October, due at 13:30 GMT.

According to the consensus, consumer spending contracted 0.3% compared to the 0.7% growth recorded in September. Weak consumer spending data would put further pressure on the US dollar. The Dollar has been facing a sell-off due to declining consumer inflation in the US economy.

Reporting inflation in the US for October indicated that headline inflation rose at the slowest rate in more than two years. The annual headline CPI rose 3.2%, below estimates of 3.3% and the previous reading of 3.7%.

AUD/USD aims to rise above the immediate resistance drawn from the August 15 high around 0.6520. The Asset aims to stabilize above the 50-day exponential moving average (EMA), which is trading around 0.6420, indicating that the short-term trend is bullish.

The Relative Strength Index (RSI) (14) is trying to move into the bullish range of 60.00-80.00. If the RSI (14) succeeds, the Australian Dollar bulls will continue to strengthen.

A decisive break above the August 15 high around 0.6522 will take the asset to the August 9 high at 0.6571. The breakout of the latter will push the pair towards the August 10 high at 0.6616.

On the other hand, if the pair falls below the lows around 0.6286 on October 3, further declines would occur. This would expose AUD/USD to the October 21, 2022 low of 0.6212, followed by the October 13, 2022 low of 0.6170.

AUD/USD Daily Chart