AUD/USD soars above 0.6700 after US CPI

• US Dollar under pressure after US March CPI data. 
• Later on Wednesday, the Fed will release the FOMC minutes. 
• AUD/USD breaks key resistance levels, outlook positive. 

The AUD/USD jumped to 0.6723, reaching a one-week high after the release of the US inflation numbers. The US Dollar tumbled across the board and stocks rose. 

Inflation slows, Wall Street cheers 

The US Consumer Price Index rose 0.1% in March, below the 0.4% increase of February and smaller than the 0.3% of market consensus. The CPI rose 5% in the year through March, the slowest in almost two years. The Core CPI rose by 0.4% in line with expectations, and the annual rate climbed 5.6%, above the 5.5% of the previous months. Later on Wednesday, the Federal Reserve (Fed) will release the minutes from its latest monetary policy meeting. 

After the numbers, Treasury bond rallied and the US Dollar sank. The US 10-year dropped to 3.34% and the 2-year to 3.90%. Wall Street futures are up, with main indexes gaining 0.60% on average. 

In Australia, the key report of the week will be on Thursday with the March Employment figures. In the US, market participants will get fresh inflation data with the Producer Price Index. 

AUD/USD back above 0.6700

The AUD/USD retake the 0.6700 area and climbed to 0.6723. It is holding firm, with the price above key moving averages in the four-hour chart. 

More gains could face resistance at 0.6725/30, and above the next target stands at 0.6755. A slide back below 0.6675 would weaken the outlook for the Aussie.