- The Aussie is in retreat once again, marks in a new low for the year.
- RBA rate decision ahead, move is widely expected to be on hold but statement language could change.
The AUD/USD is trading near 0.7340 after Monday saw the pair on the decline once more, slipping from a high of 0.7409 for the new week.
The Aussie fell into a new low for 2018 yesterday as the US Dollar rebounded from Friday’s sell-off, and the overall trend appears to have rolled over into bearish territory for now.
Today brings the Reserve Bank of Australia’s (RBA) latest rate statement, and traders will be looking for any significant changes in the bank’s prepared message. The RBA is expected to remain on hold on interest rates for the foreseeable future, and a wobbly economy with unsure growth has many analysts pushing out expectations of a rate hike into 2019.
Ahead of the RBA rate decision will be Aussie m/m Building Permits for May, dropping at 01:30 GMT and forecast to print at 1%, compared to the previous reading of -5%.
AUD/USD Levels to watch
As noted by FXStreet’s own Valeria Bednarik, “the pair is technically bearish according to intraday readings, as in the 4 hours chart, the price broke below its 20 SMA, which gains downward traction, while technical indicators entered bearish territory, now partially losing their downward strength. A disappointing RBA could see the pair testing the key 0.7250 level.”
Support levels: 0.7310 0.7280 0.7250
Resistance levels: 0.7345 0.7380 0.7430
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