AUD/USD quiet but still up on Dollar rollover, US inflation in the pipe for Tuesday

• AUD getting a boost from USD weakness across the board.
• A quiet week so far may end when US CPI drops at 12:30 GMT.

The AUD/USD is is still trading on a high note, heading into the overnight session near 0.7870.

The Aussie lifted in Monday's trading, spurred on by Greenback selling in the broader markets as meandering wage inflation buried within the Non-Farm Payrolls jobs report last Friday is taking its toll on inflation expectations for the US economy. Further bolstering the Aussie is the tariff exemption granted to Australia, confirmed over the weekend by the Australian Prime Minister, Michael Turnbull. 

The Reserve Bank of Australia's (RBA) Assistant Governor Michele Bullock is slated to give a speech at the Seamless Australia Payments Conference in Sydney at 00:10 GMT Tuesday, but Bullock will not be focusing on monetary policy, so effect will be limited. Shortly after that will be Home Loans data for January and February's National Australia Bank's Business Confidence, both dropping at 00:30 GMT. Economic conditions in Australia continue to middle, and expectations for the two figures are not high, with Home Loans projected to come in at a 0.1% contraction, and the Business Confidence survey to fall from the previous 12 to a new printing of 9.

With the US Dollar sinking on strangled wage growth and ongoing fears of a trade war on the back of Trump's trade tariffs, all eyes will be on the US inflation figures, with the CPI due at 12:30 GMT. Core CPI is forecast to come in at 1.8% for year-on-year data.

AUD/USD Technicals

As noted by FXStreet's own Valeria Bednarik, "Technically, the 4 hours chart shows that the pair holds near its daily high, above a bearish 20 SMA, which now nears a Fibonacci support around 0.7820, while technical indicators turned flat after entering positive territory. Chances are of an upward extension on a break above the mentioned 0.7890 level, the 38.2% retracement of the December/January rally."