AUD/USD has drifted a little bit lower and...>

AUSSIE: AUD/USD has drifted a little bit lower and now sits at $0.6868. We have

Australian consumer inflation exp. coming up at the top of the hour.

- The rate shot higher Wednesday, finishing a decent 67 pips better off. It

surged through the Dec 3 high/61.8% retracement of the Oct 31 - Nov 29 slide at

$0.6862/63, running out of steam as it showed just above $0.6888, the 76.4%

retracement of the aforementioned sell-off. AUD/USD held firmly onto most of its

gains, despite a modest corrective pullback late doors.

- Demand for the Aussie already emerged in Wednesday's Asia-Pac session amid

reported AUD/NZD purchases. Firmer metals and pre-FOMC USD weakness helped

sustain the move. The pair extended gains as Fed Chair Powell said at a

post-MonPol presser that "a number of [FOMC members] did write down overshoots

of inflation as appropriate, under appropriate policy."

- Bulls would like to see a lift above yesterday's peak at $0.6889, located just

above a fibo retracement level. This would shift focus to the 200-DMA at

$0.6911. But a further retreat under the Dec 3 high of $0.6862 would play into

the hands of bears, clearing the way to the Dec 10 low of $0.6800.