AUD/USD continues scaling higher, hits fresh multi-week tops near mid-0.6500s

• AUD/USD scaled higher for the sixth consecutive session amid some renewed USD weakness.
• The momentum added credence to the recent bullish break through a descending trend-line.
• Bulls are likely to aim towards 100-DMA ahead of the US GDP and the latest FOMC decision.

The greenback remained depressed through the Asian session on Wednesday and lifted the AUD/USD pair to 1-1/2-month tops, around mid-0.6500s in the last hour.

The pair gained some follow-through traction for the sixth consecutive session on Wednesday and built on the overnight bullish break through a resistance marked 61.8% Fibonacci level of the 0.7040-0.5509 downfall.

The pair added to its gains beyond the key 0.6500 psychological mark and the positive momentum was sponsored by some renewed selling around the US dollar, led by a further improvement in the global risk sentiment.

The upbeat market mood remained well supported by the slowing spread of the coronavirus, a move to re-open economies in some parts of the world and a goodish recovery in oil prices, which dented the USD's safe-haven status.

The risk-on flow benefitted the antipodean currencies, including the aussie, which got an additional boost from Wednesday's hotter-than-expected domestic consumer inflation figures for the first quarter of 2020.

In fact, the headline CPI rose 0.3% during the three months to March as compared to 0.2% anticipated, while the yearly rate also bettered expectations and came in at 2.2% YoY as against 1.8% rise recorded in the previous quarter.

Meanwhile, the ongoing positive move over the past three trading session added credence to a near-term bullish break through a near four-month-old descending trend-line. This, in turn, supports prospects for additional gains.

Hence, a subsequent move towards challenging 100-day SMA, around the 0.6565-70 region, now looks a distinct possibility, through the further upside is likely to remain limited ahead of Wednesday's key data/event risks from the US.

The US economic docket highlights the release of advance Q1 GDP report. This followed by the latest FOMC monetary policy decision will influence the near-term USD price dynamics and provide a fresh directional impetus.

Technical levels to watch