The Reserve Bank of Australia is expected to announce a 25 basis point hike to 3.35% from 3.10% in the new trading day in Australia (at 10:30 PM ET).
The expected rate hike is not helping to push up the AUDUSD. After reaching a high of 0.7157 on Thursday, sellers have been moving the price in the downward direction at a quick pace.
On Friday, the US jobs report sent the dollar moving to the upside and the AUDUSD lower.
Today after a lower opening, the price tried to rally, but turned back to the downside and is making new session lows in the current hourly bar.
In the process, the price of the AUDUSD has moved below its 50% midpoint of the range since the December 20 low at 0.68926. That level is now close risk technically.
The price has also entered into a swing area (see red number circles) between 0.6869 and 0.6893. The low price has reached 0.6874 so far today.
A break below 0.6869 would add to the bearish sentiment from a technical perspective with the swing low from January 10 at 0.6858 and the 61.8% retracement of the move up from the December 20 low at 0.6830 as the next downside targets on further selling momentum.
