FxWirePro: AUD/USD edges lower following RBA rate decision

• AUD/USD edged lower on Tuesday after the Reserve Bank of Australia kept interest rates unchanged, as widely anticipated.  

• Australia’s central bank held the cash rate steady at 3.60%  , in line with forecasts, and signaled restraint on further policy easing amid elevated underlying inflation, solid household spending, and renewed momentum in housing..

• The Reserve Bank of Australia, wrapping up its two-day policy discussions, cautioned that inflationary pressures appear entrenched and said it would refine its outlook as economic data unfold.

•Markets saw little likelihood of a rate cut this week after a hotter-than-expected Q3 inflation print and now assign only slim odds to any easing in December.

• The RBA has lowered interest rates three times this year following quarterly inflation reviews, but in Q3, core inflation jumped to 3%   the upper end of its 2–3% target range — driven by persistent strength in housing and market service costs.

• Immediate resistance is located at 0.6570 (50%fib), any close above will push the pair towards 0.6600(Psychological level).

• Support is seen at 0.6512(38.2%fib) and break below could take the pair towards 0.6440(23.76%fib).

 Recommendation: Good to sell around 0.6540, with stop loss of 0.6600 and target price of 0.6490