• AUD/USD hovered around 0.6940 on Friday as a broad selloff in global equities and metals weighed on risk appetite.
•The cautious mood followed sharp declines on Thursday, with silver tumbling another 5.2% and Bitcoin falling 3.3%, highlighting a broader retreat from higher-risk investments.
• Aussie gains made early in the week when the Reserve Bank of Australia hiked its cash rate a quarter point to 3.85% and left the door open to further tightening if inflation stayed stubborn in coming months.
•Appearing before lawmakers on Friday, RBA Governor Michele Bullock reiterated that higher rates were needed to slow the economy and bring demand back into line with limited supply..
• Markets imply around a 70% chance rates will rise to 4.10% at the RBA's May meeting, following inflation data for the first quarter due in late April.
• Immediate resistance is located at 0.7000(Psychological level), any close above will push the pair towards 0.7061(23.6%fib).
• Support is seen at 0.6904 (38.2%fib) and break below could take the pair towards 0.6861(SMA20)
Recommendation: Good to buy around 0.6940 with stop loss of 0.6900 and target price of 0.7090
