FxWirePro: AUD/USD gains some ground but outlook is bearish

• AUD/USD firmed on Friday  as Japan’s move to strengthen the yen sparked a sharp decline in the dollar overnight, providing fresh support to Australian dollar .

•Australia's second-quarter inflation report on Wednesday further weakened the case for additional monetary tightening. The Reserve Bank of Australia's preferred trimmed mean inflation measure slowed to 3.6% year-on-year, below the central bank's 3.8% forecast issued

• Investors have largely abandoned expectations of an RBA rate increase in August and September, with markets now assigning only a 50% probability of a hike by November..

• On the data front, Australia’s final demand Producer Price Index (PPI) jumped 1.3% quarter-on-quarter in Q2 2026, accelerating sharply from a 0.4% rise in the previous quarter and exceeding market expectations for a 0.3% increase.

•On an annual basis, Australia's final demand Producer Price Index (PPI) increased 3.6% in the second quarter of 2026, up from a 3.0% rise in the previous quarter.

•  Immediate resistance is located at 0.6971(SMA20), any close above will push the pair towards 0.6984(50%fib).

•  Support is seen at 0.6917 (38.2%fib) and break below could take the pair towards 0.6899(Lower BB).

 Recommendation: Good to sell  around 0.7060 with stop loss of 0.7100 and target price of 0.6950