• AUD/USD firmed on Friday as Aussie held steady as rising global equities offset pressure from a firmer greenback.
• The RBA left its cash rate unchanged at 3.6%, acknowledging softer inflation that is still above the 2%–3% band
• Australia’s economy is slowing gradually, maintaining the narrative of a soft landing without triggering alarm.
•Markets are now pricing in a 27% chance of a quarter-point rate hike at the RBA’s February meeting, with expectations rising sharply to around 76% by May.
• Attention now turns to the Q4 CPI later this month, with next week’s December jobs report also expected to provide further insights.
• Immediate resistance is located at 0.6757(23.6%fib), any close above will push the pair towards 0.6769 (Higher BB).
• Support is seen at 0.6690 (SMA 20) and break below could take the pair towards 0.6674(38.2%fib)
Recommendation: Good to buy around 0.6700 with stop loss of 0.6650, and target price of 0.6760
