• AUD/USD eased on Wednesday as escalating concerns over the U.S. government shutdown fueled investor caution, driving stronger demand for the U.S. dollar.
• The U.S. government shutdown extended into its seventh day on Tuesday, prolonging uncertainty for federal operations and creating mounting concerns for markets and public services.
• The shutdown has postponed the release of key economic indicators from the world's biggest economy, forcing investors to rely on secondary, non-government data to gauge the timing and extent of Fed rate cuts.
• RBA officials Bullock and Kent are set to appear before the Senate Economics Legislation Committee on Friday, offering potential insights into the central bank’s policy stance and economic outlook..
• Investors remain uncertain about whether the Reserve Bank of Australia will ease further this year, as inflation has surprised on the upside, making the upcoming third-quarter consumer price report later this month a key focus.
• Immediate resistance is located at 0.6594(38.2%fib), any close above will push the pair towards 0.6607 (SMA 20).
• Support is seen at 0.6536(Lower BB) and break below could take the pair towards 0.6503 (50%fib ).
Recommendation: Good to sell around 0.6570, with stop loss of 0.6650and target price of 0.6520
