• AUD/USD strengthened on Wednesday as remarks from RBA’s Hunter supported Australian Dollar.
• Australia's consumer and business sentiment has weakened following the recent oil price shock, but the economy has yet to show clear signs of a substantial slowdown in activity, a senior central banker said on Wednesday.
• Speaking on the impact of supply shocks, Reserve Bank of Australia Assistant Governor Sarah Hunter said it is not always appropriate for central banks to ignore supply-side inflation pressures. She cautioned that if inflation expectations begin to rise, tighter policy resulting in lower inflation and higher unemployment may be necessary.
• The Reserve Bank of Australia has raised interest rates three times this year, taking the cash rate to 4.35% in an effort to contain inflationary pressures stemming from the global energy shock triggered by the Iran war.
• The RBA paused in June but maintained a tightening bias, saying it continues to monitor whether rising fuel costs are feeding into other prices across the economy.
• Immediate resistance is located at 0.6963(SMA 20), any close above will push the pair towards 0.6992(50%fib).
• Support is seen at 0.6886(38.2%fib) and break below could take the pair towards 0.6843(Lower BB).
Recommendation: Good to sell around 0.6950 with stop loss of 0.7000 and target price of 0.6880
