- The Aussie goes flat for Tuesday’s early trading, the early week’s bullish action starting to taper off.
- Traders will be keeping a wary eye on the RBA due today, plus GDP figures coming out tomorrow.
The AUD/USD is flattening out in the Asia session, trading steadily near 0.7650 after a slew of data has left the Aussie on mixed footing ahead of the Reserve Bank of Australia’s (RBA) interest rate decision, due at 04:30 GMT.
China’s Caixin Services PMI came in unchanged at 52.9, with the Composite Output Index also remaining unchanged from the previous reading of 52.3, and Aussie bulls are struggling to continue finding reasons to bid up in Tuesday’s early action, especially after the Australian Current Account Balance surprised to the downside, printing at a worse-than-expected -10.5 billion compared to the expected -9.95 billion, but still better than the previous quarter’s -14 billion contraction.
Market sentiment is still remaining on-balance as the RBA has their latest rate statement at 04:30 GMT today, but with the central bank already widely expected to stand pat on interest rates well into 2019, t5raders will be focusing on the upcoming quarterly GDP figures that will be dropping on Wednesday.
AUD/USD levels to watch
FXStreet’s own Valeria Bednarik noted the AUD/USD’s recent bullish action, stating: “technically, the pair is trading at its highest in six weeks and around the 61.8% retracement of its latest daily decline, anticipating additional gains ahead particularly if bulls keep pushing through 0.7660. The 4 hours chart shows that the 20 SMA has accelerated north above the larger ones, also surpassing the 38.2% retracement of the mentioned decline at 0.7565, lately a comfort zone for the pair, while technical indicators are regaining the upside in overbought readings.”
Support levels: 0.7620 0.7565 0.7505
Resistance levels: 0.7660 0.7700 0.7740
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