• AUD/USD ticked up on Tuesday, attempting to stabilize after the prior session’s decline.
• Markets responded positively on Monday to the potential for reduced trade tensions, favoring the USD across major currency pairs.
• Market participants now turn their attention to Australia’s Q2 Consumer Price Index (CPI) due this week a critical inflation reading that may influence the Reserve Bank of Australia's policy outlook.
• Additionally, Wednesday’s U.S. Federal Open Market Committee (FOMC) meeting outcome will be closely watched for clues on the Fed’s rate path.
• Ahead of that, Tuesday’s release of U.S. consumer confidence and JOLTS job openings data, followed by the first estimate of Q2 GDP on Wednesday, could provide further momentum to the US dollar.
• Immediate resistance is located at 0.6544(SMA 20), any close above will push the pair towards 0.6619(23.6%fib)
• Support is seen at 0.6489(38.2%fib) and break below could take the pair towards 0.6468(Lower BB).
Recommendation: Good to sell around 0.6540 with stop loss of 0.6620 and target price of 0.6490
