AUD/USD catches bid wave ahead of RBA statement on mon pol

AUD/USD is trading higher on the day around 0.7645 levels ahead of the RBA statement on the monetary policy, which is expected to reiterate bank’s dovish take on interest rates.

Eyes key Fibo resistance

The spot appears on track to test 0.7672 (76.4% of 0.7835-0.7145) levels. Aussie remained resilient on Tuesday despite RBA rate cut and dovish comments from PM Turnbull. Broad based US dollar selling helped Aussie as well.

The bid tone strengthened again in Asia with traders eyeing RBA statement, although markets do not expect major hawkish/dovish surprise.  Ahead in the day, US non-farm payrolls release could influence broad based demand for the US dollar.

AUD/USD Technical Levels

Violation of resistance at 0.7672 (76.4% of 0.7835-0.7145) could trigger fresh short unwind and open doors for 0.7723 (Mar 31 high), which could be taken out at one go following which 0.7835 (Apr high) could be put to test. On the other hand, breach of 0.7597 (23.6% of 0.6827-0.7835 + 5-DMA) could yield a move to 0.7571 (61.8% of 0.7835-0.7145), under which the pair could target 0.75 handle.