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AUD/USD slipping away from 0.74 as the RBA rate call rounds the corner

8/7/2018, 10:15:39 AMTrading Strategies
AUD/USD slipping away from 0.74 as the RBA rate call rounds the corner

The AUD/USD is trading near 0.7385 after Monday's market action failed to drive much momentum into the Aussie, and AUD traders are sitting tight ahead of the Reserve Bank of Australia (RBA) showing for Tuesday.

The RBA is set to release their latest rate statement, though with the Australian central bank widely expected to remain on hold on interest rates until the later quarters of 2019, today's statement is unlikely to provide much impetus for traders.

Despite the RBA very likely to remain unmoving on rate hikes for the better part of a year, markets will still be keeping a close eye on the RBA's subsequent Rate Statement, which could drop clues about the central bank's bias regarding Aussie economic data, and traders will be looking for hints about the RBA's next move, with a further interest rate cut not necessarily of the table.

AUD/USD levels to watch

With the Aussie-Dollar pairing mixing amidst a lack of direction, technical indicators are beginning to spend most of their time drifting near the naught-lines, and as FXStreet's own Valeria Bednarik notes: "the pair offers a neutral stance in its 4 hours chart, as it remained capped by converging 100 and 200 SMA, both running parallel at around 0.7400 and barely above a bearish 20 SMA, while technical indicators head modestly lower around their midlines. The pair remains within familiar levels, and it will take some follow-through either above 0.7445, or below 0.7330 to see a directional continuation afterward."

Support levels: 0.7370 0.7330 0.7300  

Resistance levels: 0.7400 0.7445 0.7485