FxWirePro: AUD/USD dips after RBA Governor speech

• AUD/USD dipped on Tuesday  as digested    RBA Governor Michele Bullock sppech and looked ahead to Wednesday  Australia's   CPI report   .

•   Australia's central bank chief said on Tuesday that persistent underlying inflation could require a further slowdown in domestic demand, adding that additional interest rate hikes remain on the table if necessary.

• Speaking in Sydney on Tuesday, RBA Governor Michele Bullock said policymakers remained uncertain whether this year's three rate increases were enough to return inflation to the central bank's 2%–3% target band.

• Bullock devoted much of her speech to supply-side shocks, saying the recent jump in oil prices highlights how early it is to assess the full economic impact of the Middle East conflict.

• Market attention now shifts to Australia's   CPI report  due on Wednesday, wgich is expected to show inflation rising 0.7% quarter-on-quarter and 4.1% year-on-year . The data could significantly influence expectations for the RBA's next policy move.

•  Immediate resistance is located at 0.7045(Higher BB), any close above will push the pair towards 0.705650%fib).

•  Support is seen at 0.6966(38.2%fib) and break below could take the pair towards 0.6885(Lower BB).

 Recommendation: Good to sell around 0.6980 with stop loss of 0.7050  and target price of 0.6900