FxWirePro: AUD/ USD hits 15-month high ,scope for further upside

• AUD/USD  rose to hit  15-month high on Wednesday as hawkish RBA expectation offset Australia’s softer-than-expected CPI release.

• The RBA cut interest rates three times last year to 3.6% but has warned that the next move could be up given the pick-up in inflation.

•Investors see a roughly 39% chance that the RBA could raise rates as soon as February, with focus on Wednesday’s inflation data.

• Australian consumer prices increased less than expected in November, according to Wednesday’s data, but persistent core inflation suggests that markets still see a chance of an interest rate hike as soon as next month..

• Data from the Australian Bureau of Statistics showed that the monthly consumer price index (CPI) remained flat in November, while annual inflation eased to 3.4% from 3.8%.

•  Immediate resistance is located at 0.6764(23.6%fib), any close above will push the pair towards 0.6778(Higher BB).

•  Support is seen at 0.6717 (Daily low) and break below could take the pair towards 0.6679(38.2%fib)

Recommendation: Good to buy  around 0.6750, with stop loss of 0.6700, and target price of 0.6810