FxWirePro: AUD/USD advances as USD confidence slips

• AUD/USD rose higher on Monday as fading bets that the Federal Reserve will need to raise interest rates to tame inflation weighed on the U.S. dollar.

•  Softer U.S. inflation and weaker retail sales reduced expectations of an imminent Fed hike, with markets pricing a 71% chance of a hold next month..

• Markets await Thursday’s jobs data, with forecasts for 15,000 new jobs and a steady 4.4% unemployment rate. The RBA expects unemployment to rise to 4.8%.%.

• RBA Deputy Governor Andrew Hauser speaks Wednesday, with markets seeking clues on rates. The RBA has held rates at 4.35% but keeps the door open to another hike.

•  Australia’s July employment report is due Thursday, with Reuters economists expecting employment to increase by 15,000 and the unemployment rate to remain at 4.4%. The previous month’s strong 76,300 job gain had reinforced expectations for further RBA tightening.

• Immediate resistance is located at 0.7125 (38.2%fib), any close above will push the pair towards 0.7113(Higher BB).

• Support is seen at 0.7083(Daily low ) and break below could take the pair towards 0.7036( (SMA 20).

 Recommendation: Good to buy around 0.7100, with stop loss of 0.7050 and target price of 0.7160