The exchange rate has been able to print higher high and higher lows since the bottoming, now threatening the NA high at 1.0430, with the focus now completely shifted towards the RBA monetary policy decision and accompanying statement. The market is expecting the central bank to stay pat, although it may be pre-mature to think an end to the easing campaign just yet.
Looking at probable areas where buy and sell orders may be clustered ahead of RBA, the downside seems well protected by mentioned 1.0360/80 ahead of 1.0340/60 (March 15 and 19 lows), which should also provide significant buying interest in what may be interpreted as a developing uptrend on the daily/H4 timeframes. On the upside, 1.0465/75 fresh supply produced through last March 27 European session looks like a potential area where sellers may be camped ahead of 1.05 round number protection.
According to Sean Lee, founder at FXWW: "The RBA will leave rates on hold later today but it’s what they say in their statement which will be of most interest to the market. Any sign of an end to the easing cycle will see a quick spike in the Aussie whereas any signs that the situation in Cyprus has caused a re-think could see more heavy AUD/JPY long liquidation. The ranges are still quite clear in AUD/USD between 1.0350/1.0500 so I prefer to play the edges of this."