FxWirePro: AUD/ USD edges up as Australian dollar gains on hawkish RBA outlook

• AUD/USD edges up on Friday   as  Australian dollar was supported by growing expectations of further OCR rate hikes.

• A high reading on inflation this week has left markets implying an 80% chance the Reserve Bank of Australia will hike the 3.85% cash rate a quarter point in May.

• The next major data point is gross domestic product for the December quarter on March 4, where analysts look for a rise of 0.6%, up from 0.4% the previous quarter.

• Annual growth is seen holding at 2.1%, underpinned by a pickup in consumer spending and business investment.

  • Market focus now shifts to speeches next week from RBA officials Michele Bullock, Sarah Hunter, and Andrew Hauser, which could provide further guidance on the policy outlook.

• Immediate resistance is located at 0.7145 (23.6%fib), any close above will push the pair towards 0.7164(Higher BB).

• Support is seen at 0.7062(SMA 20) and break below could take the pair towards 0.7040  (38.2%fib).

 Recommendation: Good to buy  around 0.6090, with stop loss of 0.6900 and target price of 0.7100