FxWirePro: AUD/ USD edges higher ahead of RBA monetary policy decision

• AUD/USD edged higher  on Monday but gains were limited as  investors awaited the Reserve Bank of Australia’s  upcoming monetary policy decision.

• The Reserve Bank of Australia meets on Tuesday and is now widely seen skipping a cut and holding the cash rate at 3.6% following an uncomfortably high reading on core inflation..

• Australia’s September building approvals surged 12.0% month-on-month, more than double the   poll forecast of a 5.0% rise, suggesting some resilience in the construction sector despite higher borrowing costs.

•The AUD/USD continues to hold within its post-October 17 uptrend, though it may require a fresh catalyst such as a hawkish RBA tone to extend gains further
 
•  Immediate resistance is located at 0.6609 (38.2%fib), any close above will push the pair towards 0.6622 (Higher BB).

•  Support is seen at 0.6537 (50%fib) and break below could take the pair towards 0.6660 (Sep 6th low)

Recommendation: Good to sell around 0.6580, with stop loss of 0.6600 and target price of 0.6520