AUD/USD flirting with multi-day lows, focus shifts to Tuesday’s RBA decision

   “¢   The USD builds on Friday’s post-data rebound and continues exerting pressure.
   “¢   Disappointing Aussie housing market data adds to the downward momentum.
   “¢   The latest RBA monetary policy update eyed for some fresh directional impetus.

The AUD/USD pair kept losing ground through the mid-European session and refreshed multi-day lows, around the 0.7215 region in the last hour.

Having rejected near the very important 200-day SMA, a combination of negative factors prompted some additional long-unwinding trade on Monday and kept exerting some downward pressure for the second consecutive session.

The US Dollar built on Friday’s attempted rebound, which came after the release of stellar headline NFP and upbeat US ISM manufacturing PMI, and was further supported by a follow-through uptick in the US Treasury bond yields.  

The Aussie was further weighed down by today’s disappointing domestic housing market data, which was now seen as putting more pressure on the Reserve Bank of Australia (RBA) to adopt a dovish stance.

Hence, the downfall could further be attributed to some repositioning trade ahead of the next big event risk – the latest RBA monetary policy update, scheduled to be announced during the Asian session on Tuesday.

In the meantime, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum through Monday’s trading session amid absent relevant market moving economic releases.

Technical levels to watch