COMMENT-Locked and loaded for 0.6900 test, AUD/USD longs just need a trigger

With plenty of bullish influences in place, AUD/USD rallied above short-term resistance and the 10-DMA on Tuesday, and longs just need a catalyst as they turn their focus to a potential rise toward 0.6900.

One encouraging sign for bulls is AUD/USD's ability to shrug off the rally in USD/CNH, which would normally be a bearish influence.

AUD/USD's recent fall below 0.6595 was aided by USD/CNH's gains from below 7.2050 to above 7.2645, but the aussie has risen for the past three sessions even as USD/CNH continued higher.

Equities and commodities are also bolstering the confidence of AUD/USD longs.

Stocks (ESv1) are trading near record highs while the potential completion of corrective pull backs in iron-ore (DCIOc2), copper (HGv1) and gold GOLD could indicate their broader rallies may resume, a positive for the Australian dollar.

Technicals add to the supportive environment for AUD/USD. Rising daily and monthly RSIs imply upward momentum and the rally following April's monthly doji is a very bullish sign.

Australian April CPI and U.S. April PCE are key data risks with the U.S. report likely to attract more attention.

A downside surprise indicating a resumption of U.S. disinflation and an easier path back to the Fed's 2.0% inflation target — as well as rate cuts — would be just the ticket for AUD/USD longs, bringing the 0.6900 June 2023 high into focus.

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