Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.31% lower on the day at 0.6773 at around 05:35 GMT
Previous Week's High/ Low: 0.6850/ 0.6668
Previous Session's High/ Low: 0.6813/ 0.6742
Fundamental Overview:
Anxiety seen among traders ahead of the monetary policy decision by the Federal Reserve (Fed), which is due on Wednesday.
Recently firmer data signal that the Fed might continue the current pace of interest rate hikes, however, odds are favoring a less hawkish commentary from Fed chair Jerome Powell.
On the Aussie front, investors focus on the speech from Reserve Bank of Australia (RBA) Governor Philip Lowe, which is scheduled for Wednesday for cues about the likely monetary policy action at the next policy meeting.
Further, focus also on Australian employment data will be released on Thursday. The Employment Change is seen higher at 46.5K vs. the prior release of 32.2K. Also, the Unemployment Rate is seen lower at 3.3%.
Technical Analysis:
- GMMA indicator shows major and minor trend are bullish
- Bearish RSI divergence seen on the daily charts
- Holds above 20-DMA, 5-DMA is biased higher
- Price action is above cloud, volatility is low
Major Support and Resistance Levels:
Support - 0.6700 (21-EMA), Resistance - 0.6905 (200-DMA)
Summary: AUD/USD was trading with a neutral bias, weakness likely below 21-EMA. Bearish RSI divergence adds to the downside bias. Bearish invalidation only on decisive break above 200-DMA.
