• AUD/USD dipped on Tuesday as dollar was supported by rising expectations that the Federal Reserve will raise interest rates this week
• The U.S. Federal Reserve is widely expected to raise its main lending rate by at least 25 basis points this week, a sharp shift from just a week ago, when markets saw roughly even odds of a hike or a pause.
•Oil supply concerns intensified as the Middle East conflict continued to disrupt energy markets, with no clear end to hostilities in sight
• RBA officials, including Governor Michele Bullock, are scheduled to appear before a parliamentary committee on Friday, with markets looking for clues on the central bank’s policy outlook
• AUD/USD could extend its decline toward the 0.7070 areaas downside momentum develops.
• Immediate resistance is located at 0.7160(38.2%fib), any close above will push the pair towards 0.7172(SMA20).
• Support is seen at 0.7089(Lower BB) and break below could take the pair towards 0.7070 (50%fib).
Recommendation: Good to sell around 0.7130, with stop loss of 0.7180 and target price of 0.7070
