AUD/USD bulls in the mareket ahead of Aussie CPI

• AUD/USD supported on the approach to 0.6720s resistance. 
• Traders will turn to the Aussie CPI event as a potential catalyst.

AUD/USD is higher on the day by some 0.75% after rising from a low of 0.6644 to score a high of 0.6710 on Tuesday. A risk on appetite is supporting the high beta currencies such as the Aussie. Investors have taken solace from First Citizens BancShares' agreement to buy all of the failed lender Silicon Valley Bank's deposits and loans.

US regulators said on Monday they would backstop a deal for regional lender First Citizens BancShares to acquire failed Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. First Citizens shares jumped more than 53% during Monday trading on Wall Street.

The package includes the purchase of approximately $72 billion of SVB assets at a discount of $16.5 billion, but around $90 billion in securities and other assets will remain “in receivership for disposition by the FDIC.” “In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million,” the FDIC said in a release.

Eyes on Aussie CPI

Meanwhile and domestically, Australia's February Consumer Price Index print will grab attention after the Reserve Bank of Australia flagged it as a key data point for its April monetary policy decision, as analysts at TD Securities explained.

´´We expect CPI inflation to ease further to 7% YoY in February (cons: 7.2%) from 7.4% last month and further affirm the RBA's view that inflation likely peaked in Q4 last year. Our below consensus forecast is due to the large seasonal decline from recreational services (e.g., travel prices), partly offset by firm price increases for education and transport. We still retain a 25bps hike forecast for the April meeting as inflation is still far above the RBA's inflation target and central banks such as ECB and Fed have pushed through with hikes despite recent financial volatility.´´