FxWirePro: AUD/USD eases slightly ahead of RBA policy decision

•  AUD/USD dollar edged lower on Monday as investors digested mixed economic data from China and awaited Tuesday's Reserve Bank of Australia (RBA) policy decision.

•Data from China   the largest trading partner of Australia showed stronger-than-expected industrial output in April despite steep U.S. tariffs. However, retail sales fell short of forecasts, indicating continued weakness in consumer spending.

• Chinese Industrial output grew 6.1% from a year earlier, National Bureau of Statistics (NBS) data showed on Monday, slowing from 7.7% in March but beat a forecast.

• Retail sales, a measure of consumption, rose 5.1% in April, down from a 5.9% increase in March, and missed forecasts for a 5.5% expansion. The NBS data also showed the unemployment rate fell to 5.1% from 5.2% in March.

• The Reserve Bank of Australia will decide its monetary policy on Tuesday. Markets are fully pricing in a 25 basis point cut from the 4.10% cash rate.

•  Immediate resistance is located at 0.6437(23.6%fib), any close above will push the pair towards 0.6458(May 15th high).

•  Support is seen at 0.6375(38.2%fib) and break below could take the pair towards 0.6326(Lower BB).

 Recommendation: Good to buy around 0.6380 with stop loss of 0.6310  and target price of 0.6450