FxWirePro: AUD/USD remains firm In wake of RBA senate testimony

• AUD/USD consolidated near  three-year peak on Thursday after the Reserve Bank of Australia (RBA) signalled a continued hawkish stance.

•    Australia’s central bank governor said on Thursday that further rate hikes remain possible if inflation becomes persistent, after delivering its first increase in two years last week.

• Reserve Bank of Australia Governor Michele Bullock said it is not yet clear whether more rate hikes will be needed to curb inflation, adding that policymakers will closely monitor incoming data..

•The Reserve Bank of Australia lifted its cash rate by 25 basis points to 3.85% last week, partially unwinding last year’s easing. Core inflation rose to 3.4% in the previous quarter   the quickest pace in more than a year   and is projected by the RBA to climb to 3.7% in 2026.

•Markets now imply about an 80% chance the RBA will hike the 3.85% cash rate at its May board meeting, and a 60% probability rates could end the year at 4.35%..

•  Immediate resistance is located at 0.7151(23.6%fib), any close above will push the pair towards 0.7212(Higher BB).

•  Support is seen at 0.7070 (Feb 11th low) and break below could take the pair towards 0.6984(38.2%fib)

Recommendation: Good to buy  around 0.7120 with stop loss of 0.7050 and target price of 0.7220