FXWirePro: AUD/USD hovers near two-month high, bias is bullish

• AUD/USD hovered near two-month highs on Friday  as traders digested RBA officials latest comments on further easing.

• Reserve Bank of Australia Governor Michele Bullock stated that the central bank is cautious about further rate cuts due to cost pressures in a tight labor market, but will act if inflation slows faster than expected.

• The Australian economy has steadily created jobs over the past year, with the unemployment rate near 4%. Inflation has dropped from a 7.8% peak in late 2022 to 2.4% in Q4 2024, while annual wage growth has fallen by 1 percentage point.

• Swaps imply that investors see just a 17% probability that the RBA will follow up with a cut in April, while a move in May is still priced at 70%.

•  At GMT 06:07 The Australian dollar  was last  trading down   0.14% to $0.6389. 

•  Immediate resistance is located at 0.6406(38.2%fib), any close above will push the pair towards 0.6431(Higher BB).

•  Support is seen at 0.6347 (50%fib) and break below could take the pair towards 0.6329(Feb 20th low)

Recommendation: Good to buy around 0.6360, with stop loss of 0.6300, and target price of 0.6420