AUD/USD Forecast: Nearing 0.7300 ahead of RBA’s decision

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7289

The Reserve Bank of Australia will announce its decision on monetary policy.
Gold prices underpinned the aussie as the bright metal trades at an over one-week high.
AUD/USD has near term bullish potential, needs to clear 0.7330.

The AUD/USD pair ended a third consecutive day with gains but remains below the 0.7300 level. The aussie advanced on the back of a weaker greenback and higher gold prices, ignoring the poor performance of global equities. The bright metal surged to an over one-week high as demand for the American dollar receded ahead of US employment data scheduled for the end of the week, while the market mood was sour.

The week started with a holiday in Australia which celebrated Labour Day, which means no macroeconomic data came from the country. This Tuesday, the focus will be on the Reserve Bank of Australia monetary policy decision. Policymakers are widely anticipated to maintain their current policy unchanged, with investors looking at their assessment of the economic situation.

Australia will also release the Commonwealth Bank Services PMI and TD Securities Inflation, both for September, and the August Trade Balance, expected to post a 10.650 million surplus.

AUD/USD short-term technical outlook

The AUD/USD pair is trading around the 38.2% retracement of its latest daily decline, and the daily chart shows that a bearish 20 SMA converges with the mentioned Fibonacci level. Technical indicators maintain their bullish slopes but stand within neutral levels. Bulls could have better chances if the advance continues beyond 0.7330, the next Fibonacci resistance level.

In the near term and according to the 4-hour chart, the pair is above its 20 and 100 SMAs but struggling around the 200 SMA, while technical indicators stabilized near overbought readings, suggesting a buying pause. Approaches to the 0.7400 price zone will likely attract sellers, while bears will have better chances once below the 0.7245 price zone.

Support levels: 0.7245 0.7210 0.7175

Resistance levels: 0.7330 0.7370 0.7410

View Live Chart for the AUD/USD

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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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