AUD/USD resting just above 0.74 as Aussie CPI rounds the corner

• Aussie trading steady and back over 0.74 ahead of Wednesday's CPI showing.
• A missed inflation reading could see bears back in control of the AUD/USD in the medium-term.

The AUD/USD is trading near 0.7420 heading through Wednesday's overnight session after catching some lift on Tuesday to recapture the 0.7400 major level as the US Dollar softened across the board.

The Aussie managed to recover from recent lows near 0.7360 as Antipodean traders get ready for the Australian CPI reading due on Wednesday. The AUD remains capped by a stiff resistance range between 0.7425 and 0.7450, and so far bulls have been unable to stage a viable long recovery. 

Aussie traders are geared up for a data showing for the Aussie on Wednesday, with inflation numbers dropping at 01:30 GMT. The q/q Australian Consumer Price Index for 2018's second quarter is forecast to tick up slightly from 0.5% from Q1's 0.4%, and a beat on expectations could see a long-awaited confidence surge in the AUD/USD, while a miss will leave buyers in the lurch, and send the Aussie back into recent lows below the 0.7400 area.

AUD/USD Levels to watch

Despite late Tuesday's pick-up for the major pair, the AUD continues to consolidate near recent swing highs and lows, and as FXStreet's own Valeria Bednarik noted, "at the time being, the pair continues trading within familiar levels, and short-term neutral according to technical readings in the 4 hours chart. In the mentioned time frame, the pair briefly slipped below its moving averages to settle again between the 100 and 200 SMA, with the larger ones capping advances. Technical indicators have turned lower within positive levels, with the Momentum pressuring its mid-line and the RSI currently at 54, failing to provide clear directional clues."

Support levels: 0.7370 0.7330 0.7300    

Resistance levels: 0.7445 0.7490 0.7520 

View Live Chart for the AUD/USD