• AUD/USD gained slightly on Tuesday as investors assessed Reserve Bank of Australia (RBA) Governor Michele Bullock’s speech.
•In her last public remarks before the September rate-setting meeting, RBA Governor Michele Bullock discussed the central bank’s tolerance for unemployment. Under its dual mandate, the RBA seeks to support full employment while maintaining price stability by keeping inflation within its target range.
•Michele Bullock said on Tuesday that monetary policy has limited ability to respond directly to supply shocks, but must act to contain their second-round impact on inflation.
• Markets are now pricing in a 25-basis-point rate increase by the Reserve Bank of Australia on September 29 as increasingly likely, with futures implying the move is close to fully priced.
• Immediate resistance is located at 0.7165(SMA 20), any close above will push the pair towards 0.7179(38.2%fib).
• Support is seen at 0.7094(50%fib) and break below could take the pair towards 0.7072 (Higher Lower ).
Recommendation: Good to sell around 0.7140, with stop loss of 0.7240 and target price of 0.7080
