• AUD/USD hovered near three-month high on Wednesday as investors braced for a possibly hawkish guidance from the U.S. Federal Reserve.
•The Fed is widely expected to announce a rate cut on Wednesday, but investors expect policymakers to remain divided.
•Some policymakers have warned that price pressures could easily pick up again, while others have been more concerned about the labor market's health.
• Meanwhile, the Reserve Bank of Australia caught markets off guard with a sharply hawkish shift, ruling out further rate cuts and warning that hikes could come as early as February if inflation fails to moderate..
•Further direction may come from domestic data, with Australia’s November employment report due on Thursday. Economists polled expect a 20,000 rise in jobs and the unemployment rate holding at 4.4%.
• Immediate resistance is located at 0.6665(Higher BB), any close above will push the pair towards 0.6700(23.6%fib).
• Support is seen at 0.6612 (38.2%fib) and break below could take the pair towards 0.6544(50%fib).
Recommendation: Good to buy around 0.6620, with stop loss of 0.6550 and target price of 0.6690
