AUD/USD hits new YTD high on USD weaknessAustralian Dollar / U.S. DollarFOREXCOM:AUDUSDFOREXcomThe US dollar weakened further on the back of the unexpected drop in producer prices inflation, which has now raised the bar even higher for CPI to beat expectations tomorrow. This caused the AUD/USD to break to a new high for the year. The Aussie could now start to rise more noticeably after months of underperformance relative to the euro and pound, for example. As you may have already seen it, headline and core prints fell by 0.1% in August took the market by surprise given that gains of 0.3% were expected on both fronts. What’s more, July was revised down to +0.7% from +0.9% previously. As a result, the year-over-year PPI fell to +2.6% against expectations of 3.3% as energy and services prices took a dip. From a technical point of view, the AUD/USD repeatedly tested the support zone between 0.6370 and 0.6430 in recent weeks, but the bears failed to cause a breakdown. Instead, rates have started to rally, along with the other major pairs. The latest rally in the AUD/USD pushed through 0.6560 to create a short-term higher high earlier this week, before a brief pause yesterday. The fact that the July peak at 0.6625 is now taken is a positive development now from a bullish point of view. If the breakout can now hold, then this could open the way towards round-number handles such as 0.67, 0.68, and beyond, with the September 2024 high at 0.6942 the next major objective if momentum holds. The 0.6560 level now acts as the first layer of support. Below that we have 0.6500. By Fawad Razaqzada, market analyst with FOREX.com