FxWirePro: AUD/USD firms on hawkish comments from RBA official

• AUD/USD  firmed on Monday    as comments from RBA Assistant Governor Hauser lifted Australian dollar.

• A senior RBA official said Monday that Australia’s economy, which began recovering last year, continues to see demand outpacing potential output.

•At a UBS conference in Sydney, RBA Deputy Governor Andrew Hauser said demand was “slightly” above potential output when GDP growth began to accelerate last year, marking the tightest economic recovery since the early 1980s.

•  The RBA left interest rates unchanged at 3.6% last week as a surge in inflation, firmer consumer demand and a revival in the housing market saw policymakers turn more cautious about further easing after three rate cuts this year..

• Inflation is now expected to stay above the 2-3% target band until at least mid-2026 as the central bank acknowledged there might be more capacity constraints in the economy than previously thought.

• Attention now turns to Australia’s October employment report due Thursday, with a Reuters poll forecasting a 15.0K job gain and unemployment steady at 4.4%.

• Immediate resistance is located at 0.6516(SMA20), any close above will push the pair towards 0.6548(50%fib).

• Support is seen at 0.6478 (61.8%fib) and break below could take the pair towards 0.6440(Lower BB).

 Recommendation: Good to buy around 0.6520, with stop loss of 0.6600 and target price of 0.6470