FxWirePro: AUD/USD firms on hawkish RBA meeting minutes

• AUD/USD  extended gains  on Tuesday after  minutes from Australia's central bank's last meeting revealed it was prepared to lift rates to tame inflation.

• The Reserve Bank of Australia’s meeting minutes showed policymakers weighing the need for a possible rate increase next year to bring inflation under control..

• Minutes from the Reserve Bank of Australia’s December policy meeting showed the board assessed that inflation risks had risen after unexpectedly strong consumer price readings in October and the third quarter.

•The board agreed that the labour market remained somewhat tight and that the economy was likely operating above capacity, with elevated capacity utilisation signalling ongoing supply constraints.

• The RBA said keeping the cash rate on hold next year would require confidence that financial conditions are sufficiently restrictive and that much of the recent rise in inflation is temporary.

• Immediate resistance is located at 0.6695(23.6%fib), any close above will push the pair towards 0.6704(Higher BB).

• Support is seen at 0.6641 (38.2%fib) and break below could take the pair towards 0.6614(SMA 20).

 Recommendation: Good to buy  around 0.6650, with stop loss of 0.6550 and target price of 0.6700