FxWirePro: AUD/USD rally continues, eyes trained on RBA

• AUD/USD  strengthened on Monday     as traders braced for a widely expected hold decision from its central bank this week.

• The Reserve Bank of Australia holds its last meeting of the year on Tuesday and a run of hot data on inflation, economic growth and household spending has wiped out any chance of a cut.  

•The Reserve Bank is widely seen leaving the cash rate unchanged at 3.6% at its Dec. 8–9 meeting

•RBA Governor Michele Bullock said in her Parliamentary Committee testimony that monetary policy adjustments would be necessary if inflation remains persistent.

• Futures implying the next move will be up and possibly as soon as May, leaving the focus on the post-meeting statement and media conference.

• Immediate resistance is located at 0.6653(38.2%fib), any close above will push the pair towards 0.6700(23.6%fib).

• Support is seen at 0.6607 (50%fib) and break below could take the pair towards 0.6545(61.8%fib).

 Recommendation: Good to buy  around 0.6620, with stop loss of 0.6550 and target price of 0.6670