AUDUSD TECHS: Trend Signals Remain Bullish

• RES 4: 0.6550 61.8% retracement of the Sep 30 ‘24 - Apr 9 bear leg  
• RES 3: 0.6528 High Nov 29 ‘24
• RES 2: 0.6471 High Dec 9 ‘24
• RES 1: 0.6439 High Apr 22
• PRICE: 0.6391 @ 16:20 BST Apr 23 
• SUP 1: 0.6349/6299 Low Apr 21 / 20-day EMA  
• SUP 2: 0.6181 Low Apr 11  
• SUP 3: 0.6116 Low Apr 10 
• SUP 4: 0.5915 Low Apr 9 and key support  

AUDUSD is holding on to its recent gains and a bullish theme remains intact. The pair has breached a key resistance at 0.6409, the Dec 9 ‘24 high. This reinforces bullish conditions and signals scope for a continuation higher near-term. Sights are on 0.6471 next, the Dec 9 2024 high. Initial key support to monitor is 0.6299, the 20-day EMA. A clear break of this EMA would be a concern for bulls.         

• 10,000 TYM5 111/113 call spds, 34 vs. 110-19.5/0.26%

The April Beige Book summary of Inflation conditions: "Prices increased across Districts, with six characterizing price growth as modest and six characterizing it as moderate, similar to the previous report. Most Districts noted that firms expected elevated input cost growth resulting from tariffs."

• Prior edition (Feb): "Prices increased moderately in most Districts, but several Districts reported an uptick in the pace of increase relative to the previous reporting period. "
• The latest edition suggests "most" businesses will attempt to pass along tariff-related price increases to consumers, but the ability to do so may vary due to softer demand in some sectors - a potential contrast with the high-inflation pandemic reopening period where sellers were easily able to pass on price increases:
• "Many firms have already received notices from suppliers that costs would be increasing. Firms reported adding tariff surcharges or shortening pricing horizons to account for uncertain trade policy. Most businesses expected to pass through additional costs to customers. However, there were reports about margin compression amid increased costs, as demand remained tepid in some sectors, especially for consumer-facing firms."