AUD/USD weakening at the 0.77 line

The AUD/USD is trading quietly in Asia ahead of a hectic session, testing into 0.7700, but the level could break at any moment if risk aversion dries up at all.

This week's big showing from the Reserve Bank of Australia (RBA) came and went without much of a to-do at all. The RBA's Meeting Minutes came out and confirmed most of what everybody already knew: the Australian economy is growing, but not quite fast enough, and the RBA is playing wait-and-see for stronger growth numbers before moving on interest rates.

Markets are likely to move today following the UK's inflation figures when the Consumer Price Index drops at 10:00 GMT, but the big news this week is the US Fed on Wednesday, who is expected to increase the key interest rate to 1.75%. markets have begun to coil ahead of the major event, and risk appetite may find itself on balance until the Fed bombs out the markets. The AUD has little action this week, outside of Unemployment figures due early Thursday at 01:30 GMT.

AUD/USD Technicals

The pair is resting on fresh lows, and a bearish break and capture of the 0.7700 level will see the AUD/USD trading at three-month lows. Support is thin from yesterday's low of 76.85 to late November's swing high of 0.7630, while resistance is piled up from Monday's high at 0.7725 and early February's swing low of 0.7775.