• AUD/USD advanced on Wednesday as increasingly hawkish signals from the Reserve Bank continued to reinforce expectations for another rate hike this month.
• Markets are pricing a 72.9% probability of a 25-bps RBA rate hike in September, as persistent inflation pressures keep expectations for further policy tightening elevated.
• RBA Deputy Governor Andrew Hauser said the board will debate a September rate hike, with inflation remaining a key concern. He also highlighted risks from the Middle East conflict, supply constraints and a global AI-driven boom.
• Attention will shift to U.S. August PPI on Thursday and CPI on Friday, with markets watching closely for evidence that rising energy prices are feeding into inflation.
• Immediate resistance is located at 0.7252(Higher BB), any close above will push the pair towards 0.7276(23.6%fib).
• Support is seen at 0.7168(38.2%fib) and break below could take the pair towards 0.7156 (SMA 20 ).
Recommendation: Good to buy around 0.7220, with stop loss of 0.7160 and target price of 0.7280
