• AUD/USD extended gains on Thursday as Australian dollar was buoyed by shifting market views that monetary policy easing cycles in Australia is over
• Australia’s consumer inflation accelerated for the fourth straight month in October, according to new data on Wednesday, forcing markets to abandon expectations of more easing and begin pricing the risk of a hike.
•Data from the Australian Bureau of Statistics showed the monthly CPI rose 3.8% year-on-year in October, its highest level in 10 months and above the 3.6% median forecast.
.• Meanwhile, Thursday’s data showed business investment climbed 6.4% in Q3, underpinned by solid demand for data centres and logistics, adding upside risk to the growth outlook.
• Rates swaps now price in just a 15% chance of another cut from the Reserve Bank of Australia next year, while assigning a 30% probability to a hike by late 2026.
• Immediate resistance is located at 0.6555(50%fib), any close above will push the pair towards 0.6585(Higher BB).
• Support is seen at 0.6507 (SMA 20) and break below could take the pair towards 0.6496(38.2%fib).
Recommendation: Good to buy around 0.6540, with stop loss of 0.6460 and target price of 0.6600
