• AUD/USD edged higher on Monday as commodity-linked Australian dollar was supported by a continued recovery in precious metals.
•Spot gold rose 1.3% to $5,026.04 per ounce by 0333 GMT after a 4% climb on Friday. U.S. gold futures for April delivery gained 1.4% to $5,046.10 per ounce.
•Spot silver climbed 4.3% to $81.11/ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29. .
• Market attention is now turning to several Reserve Bank of Australia speaking engagements this week, where policymakers are expected to maintain a hawkish tone amid persistent inflation concerns.
• hawkish RBA expectation combined with improving commodity prices, has raised expectations that AUD/USD could extend its 2026 rally beyond the 0.7158 level, which marked a three-year high.
• Immediate resistance is located at 0.7107(23.6%fib), any close above will push the pair towards 0.7141(Higher BB).
• Support is seen at 0.7011 (38.2%fib) and break below could take the pair towards 0.6936(50%fib)
Recommendation: Good to buy around 0.7000 with stop loss of 0.6950 and target price of 0.7090
