• AUD/USD edged higher on Monday but gains were limited as investors awaited the Reserve Bank of Australia’s upcoming monetary policy decision.
• The Reserve Bank of Australia meets on Tuesday and is now widely seen skipping a cut and holding the cash rate at 3.6% following an uncomfortably high reading on core inflation..
• Australia’s September building approvals surged 12.0% month-on-month, more than double the poll forecast of a 5.0% rise, suggesting some resilience in the construction sector despite higher borrowing costs.
•The AUD/USD continues to hold within its post-October 17 uptrend, though it may require a fresh catalyst such as a hawkish RBA tone to extend gains further
• Immediate resistance is located at 0.6609 (38.2%fib), any close above will push the pair towards 0.6622 (Higher BB).
• Support is seen at 0.6537 (50%fib) and break below could take the pair towards 0.6660 (Sep 6th low)
Recommendation: Good to sell around 0.6580, with stop loss of 0.6600 and target price of 0.6520
