• AUD/USD hovered around 0.7000 level on Friday as Australian dollar was pressured by surging US yields buoyed the greenback .
• Global yields continued to march higher, with the 30-year US Treasury yield rising to its highest level since 2004 after more Federal Reserve officials said additional interest rate hikes may be needed to curb high inflation..
• The US 2-year yields US2YT=RR were steady at 4.9035%, having jumped 16 bps this week to hover near a two-year high.
• Attention now turns to the Reserve Bank of Australia’s monetary policy decision on Tuesday, September 29.
•Markets are pricing a strong probability of a 25-basis-point increase, while recent comments from Governor Michele Bullock and Assistant Governor Sarah Hunter highlighted persistent upside risks to inflation from elevated energy prices and domestic demand.
• Immediate resistance is located at 0.7055(50%fib), any close above will push the pair towards 0.7119(SMA 20).
• Support is seen at 0.6996(Lower BB) and break below could take the pair towards 0.6971(38.2%fib).
Recommendation: Good to sell around 0.7050, with stop loss of 0.7150 and target price of 0.6950
