• AUD/USD slipped lower on Friday as the U.S. dollar gained ground on expectations of a Federal Reserve rate hike later this year..
• The dollar rally has been gathering pace all week, on the back of evidence that domestic inflation is mounting while the U.S. economy remains resilient despite the ongoing Middle East conflict.
•Data on Thursday showed U.S. retail sales increased further in April while weekly initial jobless claims figures pointed to stability in the labour market.
•Investors are now pricing in just over a 44% chance that the Fed could raise rates in December, compared to a 22.5% chance a week ago, according to the CME FedWatch tool..
• Immediate resistance is located at 0.7218 (Daily high), any close above will push the pair towards 0.7263(23.6%fib).
• Support is seen at 0.7188(Daily low) and break below could take the pair towards 0.7140(38.2%fib).
Recommendation: Good to sell around 0.7200 with stop loss of 0.7270 and target price of 0.7150
