• AUD/USD traded in tight range on Tuesday as investors digested latest minutes from the Reserve Bank of Australia.
• Minutes from the RBA’s August 11–12 meeting showed policymakers backed a 25 bps cut to 3.6%, citing data pointing to inflation moving toward the midpoint of the 2–3% target range.
•The RBA said its board considered accelerating the rundown of government bond holdings but ultimately agreed to stick with the current strategy of allowing them to mature.
• Policymakers noted that sustaining full employment and keeping inflation low and stable would likely require additional rate cuts over the coming year.
• Investors expect the RBA to hold rates in September and cut in November to 3.35%, with markets pricing rates to settle near 3.10% and potentially as low as 2.85%.
• At GMT 05:33, the Australian dollar was down 0.03% to 0.6480 against the greenback
• Immediate resistance is located at 0.6504(38.2%fib), any close above will push the pair towards 0.6592(Higher BB)
• Support is seen at 0.6400 (50%fib) and break below could take the pair towards 0.6384(Lower BB).
Recommendation: Good to sell around 0.6480 with stop loss of 0.6580 and target price of 0.6400
