- The Australian Dollar is losing ground amid a sourer market mood
- Tuesday’s RBA decision will set the Aussie’s near-term path.
- So far, the broader bullish trend remains intact.
The Aussie is going through a corrective reversal on Monday after failure to beach the 0.6685 resistance area, and bears looking at the intra-day low, at 0.6635.
The RBA is likely to keep rates on hold
The calendar is light today, with only the US Factory Orders data on tap, although the cautious market mood, is underpinning support for the US Dollar, to the detriment of the risk-sensitive Aussie.
Tuesday’s, RBA decision is the main focus right now. The bank is expected to keep interest rates on hold, with domestic inflation on retreat. Traders will be looking for any hint of rate cuts next year, which might extend the pair’s reversal.
In the US Tuesday’s ISM Services PMI and Wednesday’s ADP report will be the main attractions ahead of Friday’s Nonfarm Payrolls. These readings will help to assess the Fed’s monetary outlook and are likely to determine the USD’s near-time path.
From a technical perspective, the pair remains biased higher while above 0.6625 and 0.6575. On the upside, resistances are 0.6690 and 0.6735.
Technical levels to watch
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