• The Australian dollar edged lower on Tuesday as investors digested the Reserve Bank of Australia's (RBA) July meeting minutes.
• The minutes highlighted the central bank’s continued preference for a "cautious and gradual" easing strategy, with policymakers expressing reluctance to cut interest rates too aggressively despite growing calls for stimulus.
• Most RBA board members at the July 7–8 meeting considered the 3.85% rate to be mildly restrictive, but noted uncertainty over how much room remained to cut before reaching a neutral stance.
• The RBA said several data indicators had been in line with or even slightly stronger than forecasts, pointing to the benefit of waiting for a little longer.
• Looking ahead, traders will closely watch remarks from RBA Governor Michele Bullock, scheduled to speak in Sydney at 0305 GMT on Thursday. Her comments may offer further insights into the central bank’s policy direction..
• Immediate resistance is located at 0.6587(23.6%fib), any close above will push the pair towards 0.6639(Higher BB )
• Support is seen at 0.6469(38.2%fib) and break below could take the pair towards 0.6453(Lower BB).
Recommendation: Good to sell around 0.6550 with stop loss of 0.6600 and target price of 0.6480
