• AUD/USD eased on Monday as nomination of Kevin Warsh as the next U.S. central bank chief lifted greenback.
• On Friday, U.S. President Donald Trump said Warsh who prefers a smaller central bank balance sheet would be his pick for the next Federal Reserve chair.
• However, AUD/USD losses were somewhat limited by expectations that the Reserve Bank of Australia will raise rates..
• Investors largely expect the central bank to lift the cash rate by 25 basis points to 3.85% on Tuesday, marking its first hike in over two years as it seeks to curb persistent inflation..
•On the data front, Australia’s manufacturing activity accelerated in January, with the S&P Global PMI rising to 52.3 from 51.6 in December.
• Immediate resistance is located at 0.6967(38.2%fib), any close above will push the pair towards 0.7054(Higher BB).
• Support is seen at 0.6922 (Daily low) and break below could take the pair towards 0.6850(50%fib)
Recommendation: Good to buy around 0.6920 with stop loss of 0.6860 and target price of 0.6980
