• AUD/USD rose to hit one and a half month high on Tuesday as greenback continued to soften as expectations mount for more aggressive interest rate cuts by the Federal Reserve.
• Globally, attention remains on the Fed, with markets debating whether policymakers will deliver a standard 25-basis-point rate cut or opt for a larger 50-basis-point move at next week’s FOMC meeting.
• Key U.S. inflation readings will shape expectations, with producer price data due Wednesday and core CPI on Thursday, where economists forecast a 0.3% monthly rise and a 3.1% annual gain.
• Domestically, the September Westpac consumer confidence index fell 3.1%, reversing part of the strong 5.7% rebound seen in August. The decline underscores lingering uncertainty among Australian households despite some recent stability in economic conditions.
• Immediate resistance is located at 0.6621(38.2%fib), any close above will push the pair towards 0.6634(Higher BB)
• Support is seen at 0.6551(Sep 8th low) and break below could take the pair towards 0.6517(50%fib).
Recommendation: Good to buy around 0.6590 with stop loss of 0.6540 and target price of 0.6660
