FxWirePro: AUD/USD inches lower, set to stay on back foot

• AUD/USD edged lower on Thursday as caution over the Reserve Bank of Australia’s policy stance   weigh on the Australian dollar.

• A senior official said on Thursday that Australia’s central bank is assessing three key factors that could shape future policy, including whether firms have altered their pricing behaviour and whether the transmission channels of monetary policy have shifted.

•  The RBA has been surprised by an inflation surge in the last quarter, which has rendered its old price forecasts obsolete and dashed hopes for more policy easing after three cuts this year.

•Policymakers are debating whether the current cash rate at 3.6% is sufficiently restrictive to return inflation back to the 2-3% target range.

• Looking Ahead, investors   await upcoming PMI figures   for further clues on the economy’s health.

• Immediate resistance is located at 0.6490(38.2%fib), any close above will push the pair towards 0.6524(SMA 20).

• Support is seen at 0.6451(Lower BB) and break below could take the pair towards 0.6420 (23.6%fib).

 Recommendation: Good to sell around 0.6500, with stop loss of 0.6580 and target price of 0.6440