• AUD/USD held steady on Friday despite disappointing Australian retail sales data, as traders awaited the release of the U.S. PCE inflation report.
• Friday's data revealed that Australian retail sales remained flat in July, falling short of analysts' expectations for a 0.3% increase.
• Markets are now focused on the upcoming release of the U.S. PCE inflation report, which is expected to take center stage and likely provide further insights into the potential size of the Fed's next rate cut.
• Technical highlight upside risks for AUD/ USD, with momentum studies, 5, 10 and 21 DMAs tracking north.
• Immediate resistance is located at 0.6801 (23.6%fib), any close above will push the pair towards 0.6851 (Higher BB).
• Support is seen at 0.6764(Aug 27th low) and break below could take the pair towards 0.6731 (50%fib).
Recommendation: Good to buy around 0.6780, with stop loss of 0.6660 and target price of 0.6850
