AUD/USD PINNING INTO THE HIGH SIDE, CLIMBING INTO 0.6500

The AUD/USD is climbing into higher ground amidst risk-on markets.

The Aussie is up over 2% from Tuesday's low bids against the Greenback.

A miss for the US CPI data print is sending market sentiment soaring.

The AUD/USD is on the rise for Tuesday, rallying over 2% as market sentiment goes firmly risk-on following a US Consumer Price Index (CPI) print that suggests inflation in the US economy is receding faster than previously expected.

US CPI inflation softens to 3.2% vs. 3.3% forecast

US CPI inflation missed the mark on Tuesday, printing below forecast, and the miss is giving the market hope that US inflation is receding faster than policymakers have been anticipating. If inflation drops faster, for longer, than initially forecast, it would force open the door for a rate cut cycle from the Federal Reserve (Fed) sooner than expected.

Despite the Tuesday rally, the Aussie could see some difficulties holding onto higher chart ground heading through the rest of the week. Early Tuesday saw Australia's Westpac Consumer Confidence for November print at -2.6%, compared to October's 2.9% rise.

Early Wednesday will see Aussie Wage Price Index figures for the third quarter, which is forecast to increase from 0.8% to 1.3%. Later that same day, US Producer Price Index (PPI) and Retail Sales both land.

Producer inflation for the year into October is expected to hold steady at 2.7%, while month-on-month Retail Sales growth in October is expected to retreat from 0.7% to -0.3%