FxWirePro: AUD/USD uptrend gains momentum, as positive sentiment builds

• AUD/USD  rose on Wednesday  as hawkish   RBA expectation and improved risk sentiment boosted Australian dollar.

• RBA Deputy Governor Andrew Hauser warned Tuesday that rising oil prices could boost inflation and increase pressure for a rate hike at next week’s policy meeting.

• RBA Governor Michele Bullock flagged the March 17 meeting as “live” on rates, while Deputy Governor Hauser said a “genuine debate” on hikes is expected amid Middle East uncertainties..

•  Markets quickly raised the probability of a March rate hike to about 75% from under 30% earlier in the week, with a full move now priced in by August..

• Meanwhile, markets stayed on edge amid conflicting news and rising uncertainty over the Middle East war.

•  Immediate resistance is located at 0.7076(SMA 20), any close above will push the pair towards 0.7139 (23.6%fib).

•  Support is seen at 0.7034 (38.2%fib) and break below could take the pair towards 0.7017(50%fib)

Recommendation: Good to buy around 0.7150 with stop loss of 0.7100, and target price of 0.7230