FxWirePro: AUD/USD grinds higher, but topside extension unlikely

• AUD/USD gained some traction  on Friday  as a temporary easing in global bond-market anxiety improved risk sentiment, prompting traders to reassess their positions in the Australian dollar.

.• The Reserve Bank of Australia's September monetary policy meeting minutes, due on Tuesday, will be closely scrutinized for further insight into policymakers' assessment of inflationary pressures, economic growth and the outlook for interest rates.

• Investors will  also focus on September employment data next week for further guidance on the outlook, following an unexpected rise in the unemployment rate to a five-year high of 4.6% in August..

• On the Geopolitical front, U.S. President Donald Trump ruled out fresh attacks on Iran ahead of the U.S. midterm elections, easing some immediate concerns about a further escalation in Middle East tensions. However, geopolitical uncertainty and developments in energy markets remain important factors for investors assessing the outlook for risk-sensitive currencies such as the Australian dollar.

• Immediate resistance is located at 0.6994(Higher BB), any close above will push the pair towards 0.7026(50%fib).

• Support is seen at 0.6971(38.2%fib) and break below could take the pair towards 0.6949(Lower BB ).

 Recommendation: Good to sell around 0.7000, with stop loss of 0.7100 and target price of 0.6920