FxWirePro: AUD/USD eases after Fridays sharp rally

• AUD/USD eased slightly as recovered  from Friday’s losses following Federal Reserve Chair Jerome Powell's dovish pivot  .

• Powell on Friday signalled a possible rate cut at the U.S. central bank's meeting next month, saying that risks to the job market were rising but inflation remained a threat, and that a decision wasn't set in stone.

Markets are now pricing in an 87% chance of a quarter-point rate cut at the September 17 policy meeting, and a cumulative 48 basis points of reductions by this year-end, according to CME FedWatch Tool.

• Looking ahead, the RBA will release minutes on Tuesday after a unanimous 25 bps rate cut to 3.6%.

• Investors also now await a this week reading on U.S. personal consumption prices on Friday that is expected to show core inflation creeping up to its highest since late 2023 at 2.9%.

•  At GMT 05:25, the Australian dollar was down  0.04% to 0.6492 against the Greenback

•  Immediate resistance is located at 0.6497(38.2%fib), any close above will push the pair towards 0.6557(Higher BB)

•  Support is seen at 0.6414 (Lower BB) and break below could take the pair towards 0.6376(50%fib).

 Recommendation: Good to sell around 0.6490with stop loss of 0.6550 and target price of 0.6400