AUD/USD analysis: RBA quarterly Monetary Policy Statement up next

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7678

AUD/USD bearish trend firm in place as long as below 0.7730.
RBA document to bring little new to the table.

The AUD/USD pair ends the day flat, compliments to investors rushing to drop the greenback in the US afternoon. The pair flirted with the 0.7700 level at the beginning of the day but was rejected by selling interest, just ahead of the level. Data coming from Asia was quite mixed as Australian Home Loans plunged 2.3% in September against a 3.0% advance expected, but Chinese inflation was generally encouraging, up by 0.1% MoM in October, and by 1.9% YoY. The RBA will release the quarterly Monetary Policy Statement, a view of economic conditions and inflation from the Central Bank, during the upcoming Asian session. Seems unlikely that policymakers will provide something different to what was said in the latest monetary policy meetings' statements, yet hints on future action, or inaction, will be quickly priced in. The pair is back to where it started the day, right below the 23.6% retracement of its latest decline, but off its weekly lows. In the 4 hours chart, the price settled above a flat 20 SMA, while technical indicators aim marginally higher around their mid-lines, not enough to confirm a new leg higher, something more likely to happen on a bullish breakout of the 0.7730 region.

Support levels: 0.7625 0.7590 0.7555

Resistance levels: 0.7695 0.7730 0.7770

View Live Chart for the AUD/USD

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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