FxWirePro: AUD/USD edges higher ahead of RBA policy decision

• AUD/USD edged higher on Monday as   market attention shifted to  Tuesday’s RBA meeting  .

•The Reserve Bank of Australia is widely expected to raise interest rates by 25 basis points at its September 29 meeting, with persistent inflation pressures reinforcing the central bank’s hawkish stance.

• Beyond the rate decision itself, investors will closely assess the RBA’s guidance on inflation, economic growth and the future path of monetary policy.

•Markets are currently pricing in about 40 basis points of more tightening after Tuesday.

• Domestic inflation data will provide another important catalyst later in the week. Australia’s August CPI update is due Wednesday, with the Reuters poll looking for a 0.4% month-on-month increase and annual inflation at 4.0%.

On the Geopolitical front,   U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, saying Tehran was desperate to reach a deal.

• Immediate resistance is located at 0.7035(Higher BB), any close above will push the pair towards 0.7042 (38.2%fib).

• Support is seen at 0.7021(SMA20) and break below could take the pair towards 0.7008 (23.6%fib).

 Recommendation: Good to sell  around 0.7050, with stop loss of 0.7100 and target price of 0.6960