FxWirePro: AUD/USD remains buoyant, looks to extend gains

• AUD/USD edged  higher on Wednesday as investors priced in additional rate hikes, while positive services PMI figures boosted sentiment.

• The Reserve Bank raised its cash rate for the first time in two years in its February meeting amid stronger economic growth and a persistent inflation outlook.

• After the central bank flagged that inflation would not return to the middle of its 2%–3% target range by mid-2028, traders priced in about 40 basis points of additional tightening this year, with a May move seen as 80% likely.

• On the data front, Australia’s services activity surged to its strongest level in almost four years in January, but softer business confidence pointed to underlying caution.

•Australia’s Services PMI jumped to 56.3 in January from 51.1 in December, pointing to the strongest expansion in the sector in nearly four years.

•  Immediate resistance is located at 0.7082(23.6%fib), any close above will push the pair towards 0.7110(Higher BB).

•  Support is seen at 0.6945 (38.2%fib) and break below could take the pair towards 0.6840(SMA 20)

Recommendation: Good to buy  around 0.7000 with stop loss of 0.6900 and target price of 0.7090