• AUD/ USD initially gained on Monday but gave up ground as market reacted to news of Scott Bessent being named the new U.S. Treasury Secretary.
•Bessent is expected by market participants to push a more phased implementation of trade tariffs and make efforts to rein in the U.S. budget deficit.
.• Looking ahead, Australia is set to release its monthly inflation data, with October's CPI expected to soften. There's a possibility that the trimmed mean core inflation could dip to the upper end of the Reserve Bank of Australia's 2-3% target range.
• At GMT 05:26, The Aussie was trading up 0.34% at 0.6518 further away from the recent three-month low of $0.6443 .
• Immediate resistance is located at 0.6583 (38.2%fib), any close above will push the pair towards 0.6612(50%fib).
• Support is seen at 0.6500 (Psychological level) and break below could take the pair towards 0.6473 (23.6%fib).
Recommendation: Good to sell around 0.6550, with stop loss of 0.6650 and target price of 0.645
