• AUD/USD eased on Tuesday as the dollar strengthened on expectations of a smaller U.S. rate cut next month.
• The dollar has been buoyed by conviction the Federal Reserve will choose a smaller 25 basis point rate cut next month, rather than a 50 bp move.
• Traders are looking ahead to Australian jobs data on Thursday, where economists are expecting a rise of 25,000 for September and no change in the jobless rate at 4.2%.
• Technical signals show the pair could lose more ground as RSI is up at 45, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 0.6770 (38.2%fib), any close above will push the pair towards 0.6816(Oct 7th high).
• Support is seen at 0.6718(23.6%fib) and break below could take the pair towards 0.6691 (lower BB).
Recommendation: Good to sell around 0.6720, with stop loss of 0.6770 and target price of 0.6650
