The Aussie's recent gains echo speculation about the RBA's position. Inflation figures were less than stellar, with CPI coming in at +3.5% versus +3.4% expected, and some were hoping that the central bank would adopt a conservative stance, leaving itself room to tighten rates if necessary. Unfortunately, investors were disappointed. Rates remained unchanged at 4.35%, and a rate hike was ruled out. As a result, a source of fuel will have to be found to enable the Australian currency to continue its upward rally. The charts below illustrate the point perfectly. The AUDNZD is now facing an important horizontal resistance zone around 1.1045, which can be paralleled by the 0.9057/0.9110 on the AUDCAD. In the shorter term, AUDUSD is also encountering resistance at 0.6640.

Source: Bloomberg

Elsewhere in the forex galaxy, the EURUSD is holding steady at around 1.08, with 1.0890 as resistance not to be breached in order to preserve the downtrend channel in progress since the start of the year. For its part, the USDJPY has touched and bounced off the top of its support zone at 151.90, with initial resistance at 158.30.