• AUD/USD strengthened on Friday as investors assessed fresh comments from Reserve Bank of Australia governor Michele Bullock .
• Australia's top central banker said on Friday that some upside inflation risks are materialising, with the Middle East conflict and AI boom adding to price pressures..
• RBA Governor Michele Bullock told lawmakers that policymakers will assess whether three rate hikes this year, taking the cash rate to a post-pandemic high of 4.35%, will be enough to return inflation to the 2%-3% target.
• Futures pricing now implies a 95% probability of a 25-bps RBA rate hike on September 29.
• Investors are also watching Trump’s planned meeting with Xi Jinping in Washington next week, with any shifts in U.S.-China trade ties likely to affect Australia given its strong trade exposure to China.
• Immediate resistance is located at 0.7152(38.2%fib), any close above will push the pair towards 0.7255(23.6%fib).
• Support is seen at 0.7154(38.2%fib) and break below could take the pair towards 0.7123 (Sep2nd low ).
Recommendation: Good to sell around 0.7140, with stop loss of 0.7240 and target price of 0.7080
