FxWirePro: AUD/USD runs out of steam but maintains bullish outlook

• AUD/USD eased on Friday as   investors reduce risk exposure   in response to deteriorating global market sentiment.

•    However, the Reserve Bank of Australia’s hawkish policy stance and the Australian dollar’s attractive yield advantage are expected to provide underlying support and limit deeper losses.

• Investors are also focused on the release of the RBA’s February monetary policy meeting minutes on Tuesday, which could offer fresh insight into the central bank’s outlook and future rate path.

•Markets generally assume the RBA will wait for first-quarter inflation data before deciding whether to move on rates, and those are due in late April.

• Markets are pricing in a 70% probability of a rate hike to 3.85% in May, compared with just a 20% chance of a move at the March meeting.

•  Immediate resistance is located at 0.7152(23.6%fib), any close above will push the pair towards 0.7197(Higher BB).

•  Support is seen at 0.7000 (38.2%fib) and break below could take the pair towards 0.6967(SMA 20)

Recommendation: Good to buy  around 0.7070 with stop loss of 0.7010 and target price of 0.7130