• AUD/USD consolidated around 0.6495 on Wednesday after Tuesday’s steep decline, consolidating within a narrow range
• The Reserve Bank kept interest rates unchanged at 3.6% in its November meeting, in line with market expectations.
• The central bank highlighted ongoing inflationary pressures as a key factor behind its decision to maintain the current monetary stance.
• Following a hotter-than-expected third-quarter inflation print, markets had largely discounted the possibility of a rate cut this week.
• Investor expectations now point to a very limited chance of any monetary easing before May next year, as central banks maintain a cautious stance amid persistent inflation pressures.
• Immediate resistance is located at 0.6521 (SMA 20), any close above will push the pair towards 0.6538(50%fib).
• Support is seen at 0.6464 (61.8%fib) and break below could take the pair towards 0.6440(Lower BB).
Recommendation: Good to sell around 0.6510, with stop loss of 0.6600 and target price of 0.6440
