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The Aussie was down against the Greenback Tuesday following confirmation data of an improving US economic recovery and an expected Interest rate decision by the RBA.

Here’s a quick update on technicals, fundamentals and community trends.

AUD/USD Technicals

  • Previous sessions: The Aussie has been steadily dropping throughout the session, reaching a low of 1.0129 late in the afternoon and consolidating back up to 1.0136 as of this writing.
  • Current range: 1.0150- 1.0200
  • Further levels: Below: 1.0132, 1.0140, 1.0147  Above: 1.0162, 1.0170, 1.0177
  • AUD / USD likely to find support at 1.0003, and resistance at 1.0202.

AUD/USD Fundamentals

  • 07:30   US         Challenger Job Cuts y/y            
  • 08:15   US         ADP Non-Farm Employment Change       Exp. 178K    
  • 10:00   US         Fed Chairman Bernanke Testifies            
  • 10:30   US         Crude Oil Inventories       Exp. 1.1M    
  • 14:00   US         Beige Book            
  • 17:30   Australia         AIG Services Index              
  • 19:30   Australia         Building Approvals m/m     Exp. -3.1%  
  • 19:30   Australia         Trade Balance       Exp. 1.56B  
  • 20:00   US         Fed Chairman Bernanke Speaks

 * All times are GMT.

For the major events due later in the week, see the  AUD/USD forecast.

AUD/USD Sentiment

  • The Reserve Bank of Australia (RBA) announced today that it is holding the lending interest rate unchanged at 4.75%. This was expected by traders.
  • In the same announcement, the RBA explained the decision was based on expectations of a slowdown in employment growth and a strong Australian currency which will help keep inflation in check.
  • US manufacturing data reached its highest level in seven years in February, strengthening the consensus that the recovery of the of US economy is gathering momentum.

Currensee Community: 92% are short, 8% are long. 460 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.