The AUD/USD pair experienced a slight decline, opening at -0.18% following a relatively uneventful session in the U.S. This movement can be attributed to the strengthening of the USD across the board, buoyed by higher U.S. yields, with USD/JPY being a notable exception to this trend. The Australian dollar found itself trading down to 0.6597 before managing to recuperate as Wall Street bounced back from its early session lows.

Interestingly, the AUD/USD pair is now showing signs of an uptrend, supported by the positive alignment of its 5, 10, and 21-day Moving Averages (MAs), indicating a bullish sentiment in the market. This alignment suggests that the pair has strong momentum and could potentially continue to rise if it maintains its current trajectory.

The support level for the AUD/USD is currently pegged at the 10-day MA of 0.6557. A break below this level could signal the formation of a top, indicating a possible reversal in the bullish trend. Conversely, resistance is found at the high from Friday at 0.6667, where it is anticipated that selling pressure might increase. A more critical resistance level is located at 0.6707, representing the 61.8% Fibonacci retracement of the decline observed from December to February. Overcoming this resistance could open the door to further gains for the AUD/USD pair.

In terms of economic indicators, the NAB business survey was released today, though it is not expected to have a significant impact on market movements. Instead, traders and investors are keenly awaiting the U.S. Consumer Price Index (CPI) data set to be released later today. This data is crucial as it could influence the Federal Reserve’s monetary policy decisions, thereby affecting the USD’s strength and, consequently, the AUD/USD exchange rate.

The AUD/USD pair is currently navigating through a phase of bullish alignment, supported by its moving averages. The market’s focus is now on upcoming economic data releases, particularly the U.S. CPI, which could significantly influence the direction of this currency pair. As always, traders should remain vigilant and prepared for potential volatility in the forex market.