The Aussie dollar jumps 0.90% on Tuesday’s session, completely erased the Monday’s losses ahead of Asutralia Consumer Price Index and later today FOMC meeting outcome due.

FOMC monetary policy meeting scheduled be held in January 26-27th. The greenback bends against the majors and the cross as well.

What’s on today?

Conusmer Price Index -4Q and Y/Y basis

US- New home sales,

FOMC statement and Federal funds rate

Conusmer Price Index- The 4Q CPI likely to be soften but, RBA’s interest rate decision expected to remain unchanged.

The Q4 Consumer Price Index is expected to rise by 0.3%, for an annual rate of 1.6 per cent, according to an AAP survey of 15 economists.

“Interestingly the Aussie dollar fell by around 11 per cent in 2015 but so-called `tradable goods’ prices only lifted 1.9 per cent over the year,” CommSec chief economist Craig James said.

Economists are tipping the Bureau of Statistics consumer price index rose by 0.3 per cent in the three months to the end of December, according to a Bloomberg survey, reported by ABCnews.

The consumer price index will be released by the Bureau of Statistics at 11:30am (AEDT) today.

Technical view: The cross made a double top at 0.7048 earlier and 20dsma has been facing strong resistance seems at 0.7033 levels.

Trading support finds at 0.6980, 0.6950 and 0.6915

Resistance seems at 0.7050, 0.7080 and 0.7110

In the four hour chart, parallel swing highs seems at 0.7048 rounded to 0.7050, 200ema  seems at 0.7070 and 200sma seems at 0.7110 levels.

In the hourly chart, strong resistance exists between 0.7030 and 0.7045 levels. This resistance zone is the key levels to watch ahead of the CPI data.

Weakness remains below 0.6990 where as lower level supprot finds at 0.6960,0.6950 and 0.6940 levels.

Speculating buying available only above 0.7020, few pips available on the higher side contains high risk.

Weekly resistance seems at 0.7050 and 0.7145 levels.

Most of the analyst are extremely bearish of Aussie dollar.

“I am expecting the Australian dollar to go down to a minimum of 60 cents [against the USD]” Wood said.

Strategist Christopher Wood believes China will introduce currency controls, which will have hugely negative effects on the international value of the Australian dollar reported by reported by South China Morning Post.

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