• AUD/USD eased on Monday as investors grappled with renewed uncertainty surrounding U.S. trade policy.
• Confusion intensified after the U.S. Supreme Court struck down much of Trump’s tariffs on Friday, prompting him to announce a new 10% global rate, which was then raised to 15% over the weekend.
• Uncertainty remained high, as it was still unclear when the proposed tariffs would take effect, which goods or sectors might be exempt, and whether the full 15% rate would be applied uniformly across all countries.
• Meanwhile, all eyes are on Australia’s January’s consumer price data due Wednesday, after strong jobs figures last week boosted expectations of a May rate hike by the Reserve Bank of Australia to 70%.
•Forecasts point to a 0.3% monthly rise in trimmed mean inflation, keeping the annual rate at 3.3%, still above the RBA’s 2%–3% target range.
• Immediate resistance is located at 0.7139 (23.6%fib), any close above will push the pair towards 0.7173(Higher BB).
• Support is seen at 0.7047 (SMA 20) and break below could take the pair towards 0.7029 (38.2%fib).
Recommendation: Good to buy around 0.7040, with stop loss of 0.6970 and target price of 0.7110
