• AUD/USD dipped on Wednesday after data showed Australia's Q1 economic growth missed expectations in the first quarter.
•Australia's economy slowed in Q1 as strong data-centre investment lifted imports, with growth likely to face further pressure from higher borrowing costs and fuel prices..
• Australian Bureau of Statistics data showed Q1 GDP rose 0.3%, slowing from 0.9% in the previous quarter and missing the 0.5% forecast, though downside risks had been anticipated.
•Markets price a 7% chance of an RBA hike this month, a near coin toss for August, and around 23 bps of total tightening by year-end.
• Meanwhile, Geopolitical risks increased as the U.S. intercepted missile attacks in the Middle East, while Israeli strikes in Lebanon continued despite a partial ceasefire.
• Immediate resistance is located at 0.7175 (38.2%fib), any close above will push the pair towards 0.7193(23.6%fib).
• Support is seen at 0.7090(38.2%fib) and break below could take the pair towards 0.7065(Lower BB).
Recommendation: Good to sell around 0.7180 with stop loss of 0.7240 and target price of 0.7120
