• 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
