- AUD/USD tight range in the mid-Asian session, traders wary heading into the RBA policy decision due shortly.
- The pair has broken above 200-DMA at 0.7254 post poor NFP data last Friday and trades with a majorly bullish bias despite weak MI inflation forecasts.
- Data released on Monday showed Australia Melbourne Institute inflation reading came in at +1.0% y/y vs prior 1.5%. While m/m was at -0.2% vs +0.1% in the previous month.
- The RBA is widely expected to remain on hold considering the recent upbeat GDP data, while a dovish statement cannot be ruled out.
- Immediate support is seen by 100-DMA at 0.7368, while resistance is seen around 0.74 levels.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-above-200-DMA-good-to-buy-dips-217575) has achieved TP1.
Recommendation: Raise stops to 0.73, holds for upside. Break below 0.73 could drag the pair to 0.72 levels.
