AUD/USD Price Analysis: Holds onto recovery ahead of Aussie Inflation, US GDP data

• AUD/USD advances to near 0.6380 despite a strong recovery in the US Dollar and bond yields.
• The Australian Dollar will remain on tenterhooks amid the release of the Q3 inflation data.
• A breakout of the Descending Triangle chart pattern results in wider ticks and heavy volume.

The AUD/USD pair finds an interim resistance after extending recovery to near 0.6380 in the early New York session. The Aussie asset holds onto recovery despite a sharp recovery in the US Dollar and 10-year US Treasury yields, which demonstrates strength in the Australian Dollar.

A power-pack action is anticipated in the Australian Dollar amid the release of the Q3 inflation data, which will be published on Wednesday. As per the estimates, consumer inflation rose by 1.1% against a 0.8% increase in the April-June quarter. On an annualized basis, the inflation grew at a slower pace of 5.3% against the growth of 6.0% recorded earlier. The monthly Consumer Price Index (CPI) accelerated by 5.4% in September vs. 5.2% reading in August.

The US Dollar Index (DXY) climbs to near 106.00 as investors shift focus to the US Q3 Gross Domestic Product (GDP), which will be published on Thursday. As per the expectations, the US economy grew by 4.2% vs. 2.1% growth rate recorded earlier.

AUD/USD delivers a breakout of the Descending Triangle chart part pattern formed on a two-hour scale. A breakout of the aforementioned chart pattern results in wider ticks and heavy volume. Upward-sloping 20-period Exponential Moving Average (EMA) at 0.6340 warrants more upside ahead.

The Relative Strength Index (RSI) (14) shifts into the bullish range of 60.00-80.00, which indicates that bullish momentum has been triggered.

AUD/USD two-hour chart