• AUD/USD edged lower on Tuesday after data showed Westpac Consumer Confidence Index continued its downward trend, highlighting weakening sentiment among Australian household.
• Australia's consumer sentiment slid for a third month in February, a survey showed on Tuesday, as the first rise in interest rates in two years added to cost-of-living pressures and made it even harder to afford a home.
• A Westpac-Melbourne Institute survey showed its main index of consumer sentiment fell 2.6% to 90.5 in February, bringing the drop since November to 12.8%.
• Separate data showed, Australian business conditions dipped slightly in January as sales and profits slowed a little, a survey showed on Tuesday, while cost pressures were the lowest since 2021 in a hopeful sign for future inflation.
• Despite sight pullback, AUD/USD remains close to its three-year highs, indicating that the broader bullish trend remains intact. Strong external factors, including firm commodity prices and resilient global risk appetite, continue to provide underlying support to the Australian dollar.
• Immediate resistance is located at 0.71049(23.6%fib, any close above will push the pair towards 0.71536(Higher BB).
• Support is seen at 0.70180(38.2%fib) and break below could take the pair towards 0.6950(50%fib)
Recommendation: Good to buy around 0.7040 with stop loss of 0.6960, and target price of 0.7100
