• AUD/USD steadied around 0.6720 on Thursday after Australia’s central bank stuck to its hawkish guidance on interest rates despite soft economic numbers.
• Reserve Bank of Australia (RBA) Governor Michele Bullock emphasized in a speech that a rate cut is unlikely in the near future due to persistent inflationary pressures.
• Markets are currently pricing in approximately a 42% chance of a rate cut in November, while the likelihood of a rate change in December remains at 90%.
• Immediate resistance is located at 0.6747 (38.2%fib), any close above will push the pair towards 0.6794 (Sep 3rd high).
• Support is seen at 0.6690(50%fib) and break below could take the pair towards 0.6631 (61.8%fib).
Recommendation: Good to sell around 0.6730, with stop loss of 0.6790 and target price of 0.6650
