FxWirePro: AUD/USD slips ahead of key RBA minutes release

• AUD/USD  dipped on Monday   ahead of the RBA’s release of minutes from its November policy decision.

• The Reserve Bank of Australia will release the minutes of its November policy meeting on Tuesday,the release arrives as discussions grow over how restrictive the existing monetary stance actually is..

• Also on the radar is Australia’s quarterly wages data due Wednesday. Analysts expect a 0.8% rise, keeping annual growth at 3.8%. Such a result would reinforce the view that the labour market remains tight, especially after last week’s strong jobs report.

•  Swaps now price in only a 40% chance of an RBA rate cut in May next year, as a run of stronger-than-expected data has strengthened the view that the easing cycle may already be finished.

• Immediate resistance is located at 0.6543(50%fib), any close above will push the pair towards 0.6585(Higher BB).

• Support is seen at 0.6504(Nov 17th low) and break below could take the pair towards 0.6473(61.8%fib).

 Recommendation: Good to sell around 0.6540, with stop loss of 0.6600 and target price of 0.6440