AUD/USD analysis: RBA has little to work with

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7678

RBA meeting to take center stage.
Inflation readings released lately support another dovish decision.

The Australian dollar found support in rising oil and gold prices, gaining some ground against its American rival, but still below the 0.7700 level. At the beginning of the day, the country released its TD securities inflation figures for October, up by 0.3% in the month, and by 2.6% yearly basis, barely changed from September numbers. Anyway, action this week is centered in Asia, starting this Tuesday with the RBA monetary policy meeting. The Central Bank is largely expected to remain on hold, and the mentioned inflation figures surely won't help to flip to the hawkish side. The pair's intraday advance stalled below the 23.6% retracement of its latest daily decline around 0.7685, now the immediate resistance. In the 4 hours chart, the price is pressuring a horizontal 20 SMA, a few pips below the mentioned Fibonacci level, while the Momentum indicator heads lower below its mid-line, while the RSI aims marginally higher, now around 51, this last, not enough to confirm additional gains ahead. A positive surprise from the RBA could send the pair higher toward 0.7730 but would take steady gains beyond this last to take off the bearish pressure on the pair for the following sessions.

.Support levels: 0.7625 0.7590 0.7555

Resistance levels: 0.7685 0.7730 0.7770

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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