AUD/USD HOLDS ABOVE 0.7000 AS RBA RATE DECISION COMES INTO FOCUS
AUD/USD remained near the 0.7000 psychological level during Asian trading, close to its lowest level since August 4, as markets await the Reserve Bank of Australia (RBA) rate decision.
The RBA is widely expected to raise its Official Cash Rate by 25 basis points after keeping rates unchanged at its previous two meetings. Market attention will focus on the accompanying policy statement and Governor Michele Bullock’s comments for further signals on the future policy path.
The Australian Dollar continues to receive some support from the extension of the US-China tariff truce, while a stronger US Dollar and elevated US Treasury yields are limiting upside potential for AUD/USD.
From a technical perspective, AUD/USD is trading below the 200-day SMA at 0.7027, maintaining a mildly bearish near-term bias. The 61.8% Fibonacci retracement at 0.7006 provides nearby support, followed by the 78.6% level at 0.6943.
On the other hand, the 200-day SMA at 0.7027 is the first resistance level, followed by the 50% Fibonacci retracement at 0.7050. Further resistance is seen near 0.7095 and 0.7149.
For market participants, the key factors remain in the RBA rate decision, US Dollar strength, Treasury yields, the 0.7000 level, 0.7006 support and 0.7027–0.7050 resistance, which may provide further context for the near-term direction of AUD/USD.
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