AUD/USD holds steady going into RBA policy decision

Technical Analysis

Author: Justin Low | audusd

AUD/USD little changed on the day

AUD/USD D1 07-09
Major currencies are keeping in narrower ranges so far today and AUD/USD is no exception, holding tight at around 0.7430-40 going into the RBA policy decision.

On the balance of things, the risks are skewed to the upside for the aussie but a decision to delay tapering may keep some downside pressure on the currency in the short-term amid a less decisive central bank and cloudier economic outlook.

Looking at the technical side of things, the upside momentum in AUD/USD seems to have paused to start the new week but keep in mind that price action yesterday is one that is hard to extrapolate much from considering the US holiday.

The pair is still holding above 0.7400 and late-July and early-August highs around 0.7413-26, so I would argue that buyers are keeping more control for now.

AUD/USD H1 07-09
Adding to that, the 100-hour moving average (red line) is seen @ 0.7403 and that is the key near-term level to watch for buyers in order to maintain the recent upside push.

As for upside targets, a less dovish RBA may see the pair look towards 0.7500 next before taking a peek at the 100-day moving average @ 0.7539.

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