• AUD/USD retreated from six month high on Tuesday as investors attention shifted to high-impact economic data and fresh trade developments.
• Markets remained focused on US fiscal developments and changing tariff policies under the Trump administration.
• Australian monthly inflation data is due on Wednesday and analysts are expecting the monthly rate to have eased to 2.3% in April from 2.4% the previous month.
•Investors focus this week will also be on Friday's U.S. core PCE price index, for clues on the outlook for U.S. rates.
•Markets now assign a 67% chance of an RBA rate cut in July, with 80 basis points of total easing expected by early next year.
• Immediate resistance is located at 0.6499(38.2%fib), any close above will push the pair towards 0.6542(May 26th high).
• Support is seen at 0.6455(SMA 9) and break below could take the pair towards 0.6395(50%fib).
Recommendation: Good to buy around 0.6450 with stop loss of 0.6370 and target price of 0.6530
