• AUD/USD steadied on Monday as Australian dollar was supported by weakness in the U.S. dollar amid concerns over U.S. debt.
• All eyes are on what U.S. Treasury Secretary Scott Bessent might do after his intervention to cap longer-dated Treasury yields failed to calm market concern about fiscal spending and inflation, with the U.S. dollar emerging as the main casualty..
• Down Under, the Reserve Bank of Australia will release minutes of its August policy meeting where the board kept its key interest rate steady at 4.35% for a second time after threehikes this year. Policymakers have, however, said the rate could go higher if inflation risk materialises.
•Monthly inflation data is due on Wednesday. Economists polled by Reuters estimated consumer prices rose 0.8% in July versus a month earlier, but a base effect meant annual inflation likely slowed to 3.2% from 3.8%. The trimmed mean measure of inflation likely eased to 3.5% from 3.6%.
• Immediate resistance is located at 0.7186 (38.2%fib), any close above will push the pair towards 0.7202 (38.2%fib).
• Support is seen at 0.7119(50%fib) and break below could take the pair towards 07065 (SMA 20).
Recommendation: Good to sell around 0.7110, with stop loss of 0.7060 and target price of 0.7180
