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  • Aussie goes flat for Tuesday  ahead of RBA head speech.
  • Early data for Wednesday unlikely to drive much volatility.

The AUD/USD traded mostly flat through Tuesday’s session, lifting to a high of 0.7605 before bedding back down heading into the overnight session, currently trading near 0.7575.

The Aussie is likely to trade flat heading into Wednesday’s action as Aussie traders await a speech from the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe. Governor Lowe speaks at 08:00 GMT today, and traders may be sidelined as they await his talking points regarding China and their interwoven relationship with Australia.

Before that will be the Westpac Leading Index at 00:30 GMT (last -0.2%) and Construction Work Done at 01:30 GMT (forecast 1.0%, last -19.4%), but both indicators are low-tier and unlikely to drive much market reaction ahead of Lowe’s speech later.

AUD/USD levels to watch

The 0.7600 handle may have proven to be too much for Aussie bulls to handle, and the AUD/USD has dropped a bearish hammer on Daily candles, but as FXStreet’s Valeria Bednarik noted, key support could be hampering further downside: “from a technical point of view, the 4 hours chart shows that the pair stalled its recovery around a modestly bearish 200 SMA and a few pips below the 50% retracement of the mentioned decline at 0.7620, but also that so far is holding above the mentioned Fibonacci level at 0.7565, the immediate support. The 20 SMA in the mentioned chart gains upward traction below the current level, while technical indicators eased modestly but remain well above their mid-lines, indicating limited selling interest for the time being.”

Support levels: 0.7520 0.7470 0.7435  

Resistance levels: 0.7590 0.7625 0.7660