FxWirePro: AUD/USD dips but maintains bullish bias

•  AUD/USD eased slightly on Friday  as the U.S. dollar staged a modest recovery following Thursday’s sharp drop on weak jobless claims data.

• On Thursday, data showed the biggest weekly increase in the number of Americans filing new applications for jobless benefits in four years.

• That overshadowed U.S. consumer inflation data for August, which showed prices rising at the fastest pace in seven months but still modest and broadly in line with expectations.

• Fed funds futures fully price in a 25 bps rate cut on Sept. 17, with labor market weakness outweighing inflation risks.

• The Australian dollar has gained support this week from rising prices of key commodity exports, particularly iron ore and gold. For the week, it is up 1.6%, among the best performing G10 currencies.

•  Immediate resistance is located at 0.6674(38.2%fib), any close above will push the pair towards 0.6693(Higher BB)

•  Support is seen at 0.6574(50%fib) and break below could take the pair towards 0.6537(SMA20).

 Recommendation: Good to buy  around 0.6650 with stop loss of 0.6600 and target price of 0.6700