• AUD/USD edged higher on Friday as softer dollar combined with an improvement in global risk sentiment helped underpin demand for the risk-sensitive Australian currency.
• Stronger copper, gold and other commodity prices boosted the outlook for Australia's commodity-linked currency, encouraging buying interest in AUD/USD.
• Dollar weakened against major peers as well as decline in U.S. Treasury yields from recent highs, coupled with resilience in risk-sensitive assets, reduced demand for the greenback
• The Reserve Bank of Australia will meet in August and is expected to keep its cash rate unchanged at 4.35%, though markets still price in a roughly 60% chance of one final rate hike later this year, depending on the movement of oil prices.
•Traders also await key employment and inflation data due later this month, which could offer fresh clues on the policy outlook.
• Immediate resistance is located at 0.6958 (SMA 20), any close above will push the pair towards 0.7025(61.8%fib).
• Support is seen at 0.6923(50fib) and break below could take the pair towards 0.6872(June 30th low).
Recommendation: Good to buy around 0.6950 with stop loss of 0.6900and target price of 0.7000
