For the last few months, I’ve been one of the biggest AUD bears. And what is a shock is that we are now back pushing towards the highs at 80 cents. That’s a level I didn’t think we’d see so soon.

The USD weakness has been a really big factor in the movement of the majors in recent weeks. Clearly, it always is. But the extent of the sell-off has taken many by surprise.

The extended bear run has been particularly beneficial to the commodity currencies. Along with the Aussie, the NZD/USD and USD/CAD had all moved in a big way.

How Far Can the AUD Go?

The question now remains what can slow down this run? Looking at the charts, we can see that there’s not too much by way of resistance until we reach the 80 cent region. We might run into resistance at 0.7975. However, if we move that far from the lows, then I think the momentum alone will see us test 80 cents.

With that in mind, traders should be watching today’s US CPI release closely. If we get a poor print, then the USD is poised to crack support. And that will send the AUD/USD (and all the majors) barrelling higher.

So at this point in time, I can see us pushing higher. Assuming, of course, we can crack the current resistance level at 0.7900. Which as of this writing we haven’t.