• AUD/USD steadied on Thursday as a rebound in global stock markets and a recovery in commodity prices bolstered risk sentiment.
• Investors shrugged off a mixed U.S. inflation report and turned their attention to anticipated interest rate cuts from the ECB later in the day.
• AUD/USD is approaching the 38.2% fibonacci retracement level. A close above this level could lead to a significant rally towards 0.6850 level.
• Immediate resistance is located at 0.6697 (38.2%fib), any close above will push the pair towards 0.6743 (Sep 5th high).
• Support is seen at 0.6645 (50%fib) and break below could take the pair towards 0.6610 (Lower BB).
Recommendation: Good to buy around 0.6720, with stop loss of 0.6670 and target price of 0.6820
