AUD/USD: solid gains above 0.7510 post-US CPI

• AUD/USD jumps to 0.7530 on softer US inflation. 
• The Aussie is taking its cue from gold which also jumped on the US data. 
• The US core Consumer Price Index (CPI) year-on-year for April came worse-than-expected at 2.1 versus 2.2% forecast by analysts. 

The AUD/USD is trading at around 0.7513 up 0.73% on Thursday. 

In the Asian and European session, the Aussie traded quietly in the 0.7455-0.7490 range. After the release of the softer US inflation, the pair jumped 50 pips to reach the 0.7533 level.

The commodity-linked currency AUD is taking its cue from gold prices which rose past $1,322 a troy ounce on the US inflation news.

The headline US inflation advanced 0.2% and the core reading rose 0.1% month-on-month in April, however, both were 0.1% below market consensus. The softer inflation reading is attributed to the automobile sector which saw the new car prices down 0.5% and used cars prices fell 1.6% month-on-month while airfare prices dropped 2.7%. However, they should all recover next month as the summer holiday season is getting nearer, according to analysts. 

AUD/USD 4-hour chart 

The main trend is bearish, but the bulls are trying hard to create a reversal. A clear break above 0.7562 resistance could put in peril the bear trend. The next scaling point to the upside is the 0.7600 handle which should offer some resistance. To the downside, the bears will likely meet support at the 0.7500 and 0.7450 psychological level, followed by 0.7412 cyclical low.