FxWirePro: AUD/USD edges higher after RBA delivers another rate hike

• AUD/USD edged higher  on Tuesday after the Reserve Bank of Australia raised interest rates to a 15-year high and signaled it could tighten policy further if needed to contain persistent inflation..

• The Reserve Bank of Australia lifted its cash rate to 4.60% on Tuesday, the highest level in 15 years, delivering its fourth increase of the year and signaling that additional hikes remained possible to contain inflation.

• Australia's central bank unanimously raised rates by 25 basis points at its September meeting, taking the cumulative rate increases delivered this year to 1 percentage point.

• Markets had fully priced in the rate hike after July inflation exceeded expectations and renewed oil price gains heightened concerns over persistent price pressures.

•Australia's economy has slowed amid higher borrowing costs, but not enough to dispel inflation concerns. Annual growth still ran at 2.1% in the second quarter, above the 2% speed limit the central bank believes can be sustained without generating inflation.

• Immediate resistance is located at 0.7058(38.2%fib), any close above will push the pair towards 0.7122(SMA 20).

• Support is seen at 0.6980(38.2%fib) and break below could take the pair towards 0.6955 (Lower BB ).

 Recommendation: Good to buy around 0.7050, with stop loss of 0.7100 and target price of 0.6950