RBA preview: what to expect in AUD/USD?

We have the RBA tonight and AUD/USD has been flat overnight awaiting the event after a better bid display on the back of yesterday's Caixin Chinese services. 

AUD/USD was unable to hold on in the 0.76 handle though and has since been supported at 0.7570/80 region and buoyant on the back of a weaker greenback and the recent poor data from the US economy that sets the Fed back to at least the end of the year allowing the Aussie bulls some breathing space again within the August 0.78 handle's correction of the broader bullish trend.

For today, the RBA is expected to remain on hold, as well as for the rest of 2016 pending further information on growth and inflation into 2017, according to analysts at Westpac. Today's meeting is Stevens' last before his deputy Lowe succeeds him and while  it is well known that the RBA would prefer a weaker currency, they have not been prepared to do much about it ye, however, although the interest rate is at a record low, the cash rate remains well above other countries' equivalent and there is still room for maneuver this year if required, but for today, the RBA is largely expected to keep rates at 1.5% and we will be looking to the bank's statement for more of the same potentially weighing on the Aussie should there be renewed dovishness or supportive on more wait and see language. 

AUD/USD levels to monitor

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, however, the price is hovering around its 200 EMA, while the 20 SMA heads strongly higher below the current level, as indicators turned flat between positive territory. "The downside potential seems limited at this point, as it would take a break below 0.7490 to confirm a steeper decline during the upcoming sessions."

Spot is presently trading at 0.7588, and next resistance can be seen at 0.7588 (Daily 20 SMA), 0.7590 (Daily High), 0.7608 (Yesterday's High), 0.7613 (Daily Classic R1) and 0.7629 (Weekly Classic R1). Support below can be found at 0.7585 (Daily Open), 0.7584 (Hourly 20 EMA), 0.7582 (Weekly High), 0.7581 (Daily Low) and 0.7575 (Daily Classic PP). Regarding candlestick formations, we can see Doji formation on the 1-hour.