Tuesday, October 6, 2015

AUD/USD keeps range around 0.7080 ahead of RBA

FXStreet (Mumbai) - The Australian dollar keeps the range trade intact against its American peer in the mid-Asian, with AUD bulls cautious ahead of the RBA decision.

AUD/USD capped below 0.7100

Currently, the AUD/USD pair trades modestly flat at 0.7082, oscillating in a narrow 20-pips range. The Aussie retreated from two-week highs and erased a part of yesterday’s gains as traders booked profits after the recent rally ahead of the key Reserve Bank of Australia (RBA) monetary policy decision due for release shortly.

Markets are expecting the central bank to keep the monetary policy settings steady, with the key cash rate likely to remain unchanged at 2.00%.

Earlier in Asia, the pair was hit by worse-than expected Australian trade balance data, which revealed that the economy posted a trade deficit of AUD 3.095 billion in August, sliding 11% from July's shortfall, missing expectations for a shortfall of AUD2.40 billion.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7113 (Oct 5 High) levels, above which gains could be extended to 0.7161 (Sept 22 High) levels. On the flip side, support is seen at 0.7070 (Today’s Low) levels from here it to 0.7036 (Oct 5 Low).
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