FxWirePro: AUD/USD hits three-month peak,scope for futher upside

• AUD/USD hits three-month peak on Friday as Australian dollar remained bid ahead of Federal Reserve Chair Kevin Warsh’s closely watched speech at the Jackson Hole symposium.

• The Aussie has received support from growing expectations that the Reserve Bank of Australia could resume its tightening cycle..

• The RBA kept its cash rate at 4.35% in August, but its meeting minutes showed policymakers were divided over whether another increase was warranted, with several members highlighting upside risks to inflation.

• Meanwhile, attention is firmly focused on Warsh’s Jackson Hole speech, which could provide fresh clues on the Federal Reserve’s policy outlook and influence the U.S. dollar.

• Markets are particularly sensitive to any comments on persistent inflation and the path of interest rates. A hawkish tone could strengthen the dollar and limit AUD/USD gains, while a softer stance could provide the pair with another boost toward the 0.7280 region.

• Immediate resistance is located at 0.7202 (38.2%fib), any close above will push the pair towards 0.7237(Higher BB).

• Support is seen at 0.7141(50%fib) and break below could take the pair towards 0.7103 (SMA20 ).

 Recommendation: Good to buy around 0.7180, with stop loss of 0.7100 and target price of 0.7250