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During the Asian session, the AUD/USD pair has broken to the upside from a brief consolidation above 0.6660. Ahead of the release of U.S. Consumer Price Index (CPI) data, the US Dollar Index (DXY) has resumed its downward voyage, bolstering the Australian asset. As investors disregard the publication of US inflation data, the USD Index is likely to approach the 102.000 support level.

After a flat Tuesday, S&P500 futures are holding on to modest gains, indicating anxiety ahead of the quarterly earnings season. The demand for US government bonds has remained subdued as investors anticipate that US inflation will be a surprise. The yield on the 10-year US Treasury is hovering around 3.43 percent.

President of the Minneapolis Fed Bank Neel Kashkari's medium-term inflation forecast weighs on the value of the US dollar. A Fed policymaker expects inflation to be in the middle of 3% by the end of this year and closer to 2% the following year.

On the technical front, the AUD/USD pair has broken through the Inverted Flag pattern formed on a four-hour time frame. A collapse of the Inverted Flag is accompanied by broader ticks and substantial volume to the downside.

At 0.6665, the 20-period Exponential Moving Average (EMA) acts as a barrier for Aussie bulls.

In contrast, the Relative Strength Index (14) has moved from the pessimistic range of 20.00-40.00 to the bullish range of 40.00-60.00.

Breaking below the April 10 low of 0.6620 will expose the Australian dollar to the March 10 low of 0.6564 and the 0.6500 round-number support level.

In an alternative scenario, a break above the high from April 7 at 0.6691 will propel the asset toward the high from March 22 at 0.6759. A breach above this level would propel the asset to the April 3 peak of 0.6693.

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