• AUD/USD eased slightly on Friday as investors assessed market bets that the RBA’s rate easing is nearing its conclusion.
• A hot inflation reading has sealed the case that the Reserve Bank of Australia's current policy easing is now over after three rate cuts, with some economists predicting that the next move could be up rather than down.
• Data on Friday showed Australia's private credit rose 0.7% in October from a month earlier, picking up from September's 0.6%, suggesting financial conditions may not be that restrictive.
.• Swaps imply little chance that the RBA will cut rates again next year, while there is a split chance of a hike coming around the end of 2026.
• Rates swaps now price in just a 15% chance of another cut from the Reserve Bank of Australia next year, while assigning a 30% probability to a hike by late 2026.
• Immediate resistance is located at 0.6546 (50%fib), any close above will push the pair towards 0.6583(Higher BB).
• Support is seen at 0.6505 (SMA 20) and break below could take the pair towards 0.6486(38.2%fib).
Recommendation: Good to buy around 0.6520, with stop loss of 0.6460 and target price of 0.6600
