• AUD/USD dipped on Monday as renewed geopolitical tensions triggered a knee-jerk pullback in the risk-sensitive Australian dollar.
• The commodity-heavy currency is widely viewed as a liquid proxy for global risk appetite, as its movements tend to mirror shifts in investor sentiment.
•Investors see a roughly 39% chance that the RBA could raise rates as soon as February, with focus on Wednesday’s inflation data.
• The monthly consumer price data for November are out on Wednesday and forecasts favour a slight slowdown to 3.7%, from 3.8% the month before.
•The trimmed mean measure of core inflation could dip to 3.2%, after an alarmingly high reading of 3.3% in October, and would still be above the RBA's target range of 2% to 3%.
• Immediate resistance is located at 0.6730(23.6%fib), any close above will push the pair towards 0.6745 (Higher BB).
• Support is seen at 0.6662 (SMA 20) and break below could take the pair towards 0.6646(38.2%fib)
Recommendation: Good to buy around 0.6650, with stop loss of 0.6600, and target price of 0.6700
