FxWirePro: AUD/USD hits 11-week top, scope for further upside

• AUD/USD advanced to hit 11-week high on Friday as  renewed weakness in the U.S. dollar provides support to the Australian dollar.

• U.S. buyback plan in the Treasury market failed to calm the bond markets, leaving the dollar under pressure.

• Meanwhile, Australia's August flash PMI data showed that private-sector activity continues to expand. Manufacturing remained in expansion territory at 52.0, while services eased from the previous month's 53.6. A PMI above 50 indicates expansion, so the data still point to underlying economic growth despite some moderation in services.

• Markets will focus on the RBA August meeting minutes on August 25, followed by Australia's July CPI on August 26. The RBA minutes could provide additional clues about how policymakers assess inflation and the future interest-rate path..

• Immediate resistance is located at 0.7147(Higher BB), any close above will push the pair towards 0.7117(38.2%fib).

• Support is seen at 0.7112(50%fib) and break below could take the pair towards 0.7069( (Aug 19th low).

 Recommendation: Good to buy around 0.7120, with stop loss of 0.7000 and target price of 0.7200