• AUD/USD eased slightly from a 5-month high on Tuesday as the dollar ticking higher as tariff-related concerns resurfaced.
• Australian dollar also came under pressure due to weaker-than-expected domestic building permit figures and indications of a slowdown in China's services sector growth.
• Australia’s seasonally adjusted total building approvals decreased by 8.8% month-on-month, reaching a six-month low of 15,220 units. This marked a significant miss compared to market expectations of a 0.6% decline.
• Data from China showed its services sector expanded at the slowest pace in seven months in April, a dismal result.
• The next significant event is Wednesday’s policy meeting from the Federal Reserve, where it is widely anticipated that interest rates will remain unchanged.
• Immediate resistance is located at 0.6494(38.2%fib), any close above will push the pair towards 0.6557(Higher BB).
• Support is seen at 0.6438(May 5th low) and break below could take the pair towards 0.6392(50%fib).
Recommendation: Good to buy around 0.6450 with stop loss of 0.6380 and target price of 0.6530
