AUDUSD - Still Long Pre Inflation Data

We still hold a long AUDUSD view despite rising inflation as we await key US inflation data Friday which could lead to significant price action with Core Inflation Rate YoY (May) and Inflation Rate YoY (May) forecast at 3.4% and 4.7% respectively. However, whilst the FED hasn't indicated it will change it's stance on monetary policy we still see the currency pair moving higher towards 0.8, in particular if there is strong data data coming out of China as this would potentially increase demand for the Australian dollar.