FxWirePro: AUD/USD consolidates gains ,remains on positive footing

• AUD/USD  advanced on Friday  as markets moved to price in a real chance of rate hikes next year, sending Australian dollar higher.

• Australia’s top central banker said on Wednesday that the economy was likely already operating at its potential growth limit, and warned that if inflation proves more persistent than expected, it could have implications for interest rates.

• The Reserve Bank of Australia meets for the final time this year next week, and a string of strong readings on inflation, growth, and household spending has eliminated any prospect of a cut to the 3.60% cash rate.

• All eyes will now turn to the RBA’s statement and press conference to gauge how concerned policymakers are about this unexpected shift in the data.

• Swaps imply the Reserve Bank of Australia will remain on hold until late next year, but are pricing in a 75% probability for a rate hike by the end of 2026.

• Immediate resistance is located at 0.6649(Higher BB), any close above will push the pair towards 0.6701(23.6%fib).

• Support is seen at 0.6614 (38.2%fib) and break below could take the pair towards 0.6545(50%fib).

 Recommendation: Good to buy  around 0.6610, with stop loss of 0.6550 and target price of 0.6670