• AUD/USD eased on Monday as investors looked ahead to the Reserve Bank of Australia's policy decision.
• Markets broadly expect the central bank to leave interest rates unchanged on Tuesday, with investors focused on signals about the future policy path.
• The RBA has raised interest rates three times this year, fully reversing the monetary policy easing delivered in 2025.
• Economic growth has slowed, inflation has undershot expectations, and the housing market has weakened more than the central bank had anticipated..
•Markets will focus on Australia’s Q2 Wage Price Index on Wednesday, followed later by the U.S. July inflation report, which could provide fresh clues on the Federal Reserve’s policy outlook.
• Immediate resistance is located at 0.7089 (38.2%fib), any close above will push the pair towards 0.7105(38.2%fib).
• Support is seen at 0.7011(SMA 20) and break below could take the pair towards 0.6975 (50%fib).
Recommendation: Good to sell around 0.7070, with stop loss of 0.7120 and target price of 0.7000
