• AUD/USD climbed to a fresh three-year peak on Wednesday as the central bank signalled hawkish policy again, while the greenback came under pressure from softer U.S. economic data.
• RBA Deputy Governor Andrew Hauser said inflation remains high and the economy is near capacity, fueling expectations of further policy tightening.
•The RBA raised its cash rate to 3.85% last week, with markets pricing in a roughly 70% chance of a 4.10% hike in May after Q1 inflation data.
•Adding to the case for a rate hike, data on Wednesday data showed Q4 mortgage lending jumped 9.5% and investment loans hit a record .
• Immediate resistance is located at 0.7131(23.6%fib), any close above will push the pair towards 0.7202(Higher BB).
• Support is seen at 0.7070 (Daily low) and break below could take the pair towards 0.6998(38.2%fib)
Recommendation: Good to buy around 0.7110 with stop loss of 0.6950 and target price of 0.7180
