FxWirePro: AUD/USD holds marginal gains ahead of RBA interest rate decision

AUD/USD chart - Trading View 

AUD/USD was trading marginally higher at 0.6448, up 0.40% at around 03:50 GMT.

Markets await the Reserve Bank of Australia (RBA) interest rate decision due shortly at 04:30 GMT.

The RBA is widely expected to keep its cash rate and the quantitative easing program unchanged.

Focus will be on forecasts made in the statement and the quarterly Statement of Monetary Policy, scheduled for release later this week.

Should the policy statement suggest readiness by the RBA to adopt a more aggressive approach with respect to bond purchases, the Aussie could come under pressure.

Technical analysis is inconclusive at the moment, no clear directional bias is established.

Price action is capped between major moving averages - 55 and 110 EMA. Volatility is also shrinking.

Price action has bounced off strong trendline support. Break above 110-EMA will see upside continuation.

On the flipside, break below trendline support at 0.6380 will see weakness. Dip till daily cloud likely.

Major Support Levels: 0.6384 (55-EMA), 0.6380 (trendline), 0.6276 (50% Fib)

Major Resistance Levels: 0.6470 (5-DMA), 0.6502 (110-EMA), 0.6546 (Upper BB)