FxWirePro: AUD/USD hovers near three –month high, scope for further upside

• AUD/USD hovered near a three-month high on Friday as investors increasingly bet that Australia’s next move on interest rates will be a hike.

• The pair has shaken off Thursday’s weaker-than-expected Australian jobs data and is now eyeing 2025 high.  

• The probability of a quarter-point rise in the Reserve Bank of Australia's 3.6% cash rate is put at 18% for February, lifting to 70% for May. A move in August is almost fully priced.

•The consumer price report for the fourth quarter is due on January 28 and analysts fear core inflation could top 3%, the ceiling of the RBA's 2% to 3% target band.

• Immediate resistance is located at 0.6701(23.6%fib), any close above will push the pair towards 0.6726(23.6%fib).

• Support is seen at 0.6616 (38.2%fib) and break below could take the pair towards 0.6547(50%fib).

 Recommendation: Good to buy  around 0.6650, with stop loss of 0.6580 and target price of 0.6720