FXStreet (Guatemala) - AUD/USD has spiked higher to test the 0.7020 level and has made an immediate high of 0.7032 at time of writing on Q4 CPI's that beat expectation by 0.1% q/q arriving at 0.4%. However, the headline is below the prior reading of 0.5% so price may be limited on the bid. Y/Y was better than expected by the same margin and arrived at 1.7% vs 1.6% expected and improved vs the prior of 1.5%. However, the trimmed mean y/y arrived 2.1% as expected and falls within the RBA's required band of between2-3%, so on track and Aussie positive. From here, it is far more likely that China and oil will dictate price action and given the price of oil, the Aussie's upside is limited. AUD/USD levels Technically, the previous high has been breached and offers scope to 0.7045 guarding the 200 sma on the 4hr at 0.7105. To the downside, the price remains better bid above the support line at 0.6911/30 (S2/4hr sma50) and could be an opportunity to buy on dips. But, a break of 0.6918 exposes 0.6875 20 Jan lows ahead of 0.6827 2016 low. For more information, read our latest forex news.