AUD/USD Tests 0.6750 Resistance Ahead of Critical Inflation Data

AUD/USD faces a pivotal technical test at the 0.6750 resistance level, with the pair consolidating near 0.6735 as traders await Wednesday's Australian inflation report. The currency has gained 1.2% over the past week, supported by resilient commodity prices and expectations of further RBA tightening. Markets are closely watching for Q2 CPI data, with consensus expecting a 6.2% year-over-year reading, down from 7.0% previously. A higher-than-expected inflation print could prompt the Reserve Bank of Australia to deliver another rate hike at its August meeting, potentially pushing AUD/USD through key resistance. Technical analysis reveals a ascending triangle pattern, with immediate resistance at 0.6750 and stronger barriers at 0.6800. Support holds firm at 0.6680, coinciding with the 50-day moving average. The US dollar index has retreated 1.5% from recent highs, providing a favorable backdrop for AUD strength. Risk sentiment and Chinese economic data will also influence near-term direction.