- RBA kept its monetary policy steady as widely expected, maintaining a neutral stance.
- On the AUD level, the central bank reiterated that a stronger AUD may complicate economic adjustment.
- Aussie shows muted reaction to RBA’s status-quo, remains little changed near 0.7675 levels.
- Stochs are on the verge of a rollover from overbought territory, RSI has a neutral bias.
- The pair finds strong support at 0.76 level 20-day MA and rising trendline.
- Break below 0.76 to confirm weakness, drag till major trendline support at 0.7485 levels likely.
- Major trendline resistance seen at 0.77, upside only on break above.
- Major support levels - 0.7607 (cloud top), 0.7597 (20 DMA), 0.7589 (Sept 30 low)
- Major resistance levels - 0.77 (trendline), 0.7723 (88.6% Fib), 0.7732 (Sept 8 high)
- Focus shifts towards tomorrow’s Aus retail sales data and RBA Kent’s speech for further momentum on the Aussie.
Recommendation: Good to sell rallies around 0.7675/80/ SL: 0.7725, TP: 0.76/ 0.7590/ 0.7550
