• AUD/USD edged up on Monday, but upside remained limited as traders awaited Australia’s Federal budget and monthly inflation data for further rate policy clarity.
• The Australian government is poised to announce a return to deficit on Tuesday, ending a two-year surplus streak, as Prime Minister Anthony Albanese rolls out house old measures aimed at strengthening his re-election bid.
• Looking ahead , Australia’s February inflation data is due on Wednesday, with forecasts predicting a 2.5% annual increase.
• Focus will be on the trimmed mean measure, which includes key service sectors where price pressures remain high.
• At GMT 05:43, The Australian dollar was last trading up 0.16% to $0.6279
• Immediate resistance is located at 0.6315 (50%fib), any close above will push the pair towards 0.6362(March 20th high).
• Support is seen at 0.6251(38.2%fib) and break below could take the pair towards 0.6193(Lower BB).
Recommendation: Good to sell around 0.6300, with stop loss of 0.6380 and target price of 0.6250
