• AUD/USD firmed on Tuesday after Reserve Bank of Australian left its cash rate steady as expected.
• Australia’s central bank kept its cash rate unchanged at 3.60% and noting that recent data pointed to inflation potentially running higher than forecast in the third quarter while the economic outlook remains uncertain.
• Concluding its two-day policy meeting, the Reserve Bank of Australia said the board deemed it appropriate to stay cautious on policy while remaining well positioned to respond to global developments.
• After a quarter-point cut in August, markets saw little chance of additional easing this week, while an elevated monthly consumer price reading reinforced the case for waiting until the full third-quarter inflation report in late October.
• Immediate resistance is located at 0.6690(23.6%fib), any close above will push the pair towards 0.675(Higher BB)
• Support is seen at 0.6573(Daily low) and break below could take the pair towards 0.6534(38.2%fib).
Recommendation: Good to buy around 0.6600 with stop loss of 0.6550 and target price of 0.6660
