It’s going to be a big day for the Australian dollar as investors digest the RBA’s latest meeting minutes and Chinese GDP numbers. The former is expected to show that the RBA remains firmly in wait-and-see mode, while the latter is expected to show that the economy expanded around 7.2% y/y last quarter. Both of these events have the potential to move the Australian dollar for better or worse – keep an eye on possible knee-jerk reactions which could be exaggerated by algos.
Technical levels:
Support
- 0.8730
- 0.8670
- 0.8650 – a break here may encourage more bears to join the sell-off
Resistance
- 0.8805
- 0.8860
- 0.8900 – a break clears the way for a test of the all-important 0.9000 level
From a technical standpoint, the bias of the pair looks to be slightly to the upside at the moment. However, price seems to be faltering under 0.8800 – weak confidence data out of Australia may be limiting upside. Overall, the pair could go in either direction at the moment, thus we are watching today’s events very closely.
Source: FOREX.com
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