AUD/USD: eyes Chinese CPI for a potential surprise and a break of 0.77

Currently, AUD/USD is trading at 0.7677, up 0.02% on the day, having posted a daily high at 0.7682 and low at 0.7674. AUD/USD was robust on the NY session and drifted higher with a return of higher prices in the base metals and mixed feelings for the greenback.

The market awaits progress from the Senate Republicans who plan to unveil a new version of the tax bill that harbours significant differences from the House GOP's plan. According to sources, GOP leaders will have a conference at 11:30 (EST) on Thursday morning, at which they are going to share the details of their long-awaited tax overhaul legislation.

AUDUSD: The longer term charts still look heavy

However, the Aussie remains below the 0.77 handle with a double top at 0.7684 with the overnight low sighted at 0.7668. It will take a boost from forthcoming data to break the range and today holds the Chinses CPI that could offer a surprise. October's CPI annual inflation is expected to rise to 1.7%yr from 1.6%yr with food prices holding the pace down.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the intraday recovery stalled right below the 23.6% retracement of its latest downward move, which is not enough to confirm more gains ahead, moreover as technical indicators lack directional strength within neutral territory. "The pair could be forming a double bottom in the 0.7630 region, but the figure will be confirmed only on a break above 0.7729, the high set earlier this month," Valeria added.