As expected, the Australian central bank left its official rate unchanged at 4.75 percent at its policy review on Tuesday but not many analysts are buying the argument of a long pause from now, with some of them even seeing the next hike likely in the first quarter of 2011.
Fundamentals for the commodity currency now back AUD/USD targeting 1.0006, as the 61.8 percent Fibonacci from 1.0181 to 0.9723 projects.
After breaking above the key 0.9952 (50 percent Fibonacci), the pair rose to a high of 0.9964 before falling to 0.9908 by 3:16 GMT, still above Monday's close of 0.9897.
Bernanke's recent remarks about the likelihood of expanding the $600 billion asset buyback by the Federal Reserve is also weighing in the market as dollar-negative.
However, with momentum indicators implying the pair as overbought, one should also be prepared for a fall below Monday's low of 0.9847 and should view the consolidation around that level as a short-term top formation at 0.9964.
US October consumer credit data is due at 20:00 GMT, which may impact the pair. Analysts widely expect the credit disbursals to fall by $1 billion compared with a rise of $2.15 billion in September.
The dollar is also recieving support from uncertainties surrounding the euro bond issue which is hurting the single currency. Obama's plans to extend a Bush-time tax holiday scheme is also helping the greenback.