• AUD/USD edged higher on Friday as investors digested RBA Governor Bullock’s guarded remarks
• On Friday, Governor Michele Bullock emphasized the RBA’s cautious approach to easing its 3.65% cash rate, pointing to lingering inflation risks.
• Bullock stressed that policy decisions will remain data-dependent, with key reports on jobs, inflation, and household spending due ahead of the November 4 meeting..
• Following last week’s hawkish tone, markets have scaled back expectations for an imminent policy easing by the RBA.
•Futures now imply only around a 40% chance of a quarter point reduction in the 3.65% cash rate in November, when it was almost fully priced just a month ago.
• Immediate resistance is located at 0.6575(50%fib), any close above will push the pair towards 0.6599 (SMA 20).
• Support is seen at 0.6523(38.2%fib) and break below could take the pair towards 0.6506 (Lower BB).
Recommendation: Good to sell around 0.6560, with stop loss of 0.6600 and target price of 0.6500
