• AUD/USD eased on Friday as rising U.S. yields strengthened the U.S. dollar across the board.
• Treasury yields are poised for a sixth consecutive weekly increase, driven by Trump’s platform of higher tariffs and taxes, which many in the market view as inflationary.
• Next week, Australia’s third-quarter inflation data will be closely watched. The headline rate is expected to return to the 2-3% target range, while underlying inflation is likely to remain stubborn.
• Technical signals show the pair could lose more ground as RSI is down at 40, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 0.6648 (5DMA), any close above will push the pair towards 0.6672(38.2%fib).
• Support is seen at 0.6618(23.6%fib) and break below could take the pair towards 0.6600 (Psychological level).
Recommendation: Good to sell around 0.6030, with stop loss of 0.6100 and target price of 0.5930
