AUD/USD Attracts Buyers During Minor CorrectionAUD/USDOANDA:AUDUSDNouzTraderAUD/USD AUDUSD attracted sustained buying interest ("buy-on-dip") for the second consecutive day, surging to touch the 0.7170 area during Wednesday's Asian trading session. The Aussie's strength was driven by a surprise Australian consumer inflation reading that exceeded market estimates, combined with renewed pressure on the US Dollar (USD) stemming from the US Treasury's nearly US$1 trillion bond buyback initiative and hopes for a diplomatic de-escalation in the Gulf. ----------------------------------------------------------------------------------------------------- ✅ Australian Inflation Surprise (3.5% YoY) Fuels RBA Hawkish Expectations The Australian Dollar (AUD) received a strong fundamental boost from key macroeconomic data released out of Sydney: - Surge in Australian July CPI (3.5% YoY): The Australian Bureau of Statistics reported that the headline Consumer Price Index (CPI) jumped 3.5% year-on-year in July. Although this marked a slowdown from the June figure (3.8%), it significantly surpassed the market consensus estimate of 3.2%. - RBA Tightening Possibility Remains Open: Elevated consumer inflation confirms that price pressures in Australia have not yet subsided to the RBA's target range (2–3%). This situation reopens the door for further policy tightening by the Reserve Bank of Australia (RBA), providing the Aussie with a yield advantage. ----------------------------------------------------------------------------------------------------- ✅ 4-Hour (H4) Chart Technical Analysis Technically, on the 4-hour (H4) chart, AUD/USD has confirmed a very solid bullish expansion, testing a key resistance barrier above the daily moving average base: - Dominance of a Constructive Short-Term Bias: AUD/USD is holding firm above 0.7085, confirming the advantage held by buyers (bulls). As long as the spot price remains above 0.7085, any corrective pullback is projected to continue attracting buying interest ("buy-on-dips"). - Breakout Target: A clean break above 0.7180 will clear the technical barrier, paving the way for a test of the next key target in the 0.7220 area.