• AUD/USD gains slightly on Monday as investors assessed the outlook for Australian monetary policy amid persistent concerns over sticky 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.
• Investors will closely monitor comments from RBA policymakers on Tuesday, with Hunter, Governor Michele Bullock and Monetary Policy Board member Ross scheduled to speak. Their remarks could provide further clues on the central bank’s policy outlook.
• Broader risk sentiment remained fragile as Houthi forces struck Riyadh while the United States and Iran exchanged threats of renewed hostilities, keeping geopolitical risks elevated across financial markets.
• Immediate resistance is located at 0.7157(38.2%fib), any close above will push the pair towards 0.7164(SMA 20).
• Support is seen at 0.7093(Lower BB) and break below could take the pair towards 0.7070 (50%fib ).
Recommendation: Good to sell around 0.7140, with stop loss of 0.7240 and target price of 0.7080
