FxWirePro: AUD/USD gains capped ahead of key RBA decision

• AUD/USD edged higher on Friday but gains were limited  as investors looked to RBA policy meet next week .

• Traders are now turning their attention to the upcoming Reserve Bank of Australia (RBA) monetary policy meeting on Tuesday, where a 25 basis point rate cut is widely expected. Such a move could pressure the Aussie further, especially amid global risk aversion triggered by U.S. policy shifts.

• The central bank has stressed a gradual and cautious approach to easing, leading investors to expect rates to remain unchanged at the September meeting, with the next cut likely in November.

• Markets are fully priced for a move on Tuesday, with a slim chance of an outsized 50 basis point cut.

•  Immediate resistance is located at 0.6616(38.2%fib), any close above will push the pair towards 0.6629(Higher BB)

•  Support is seen at 0.6516(38.2%fib) and break below could take the pair towards 0.6466(Aug 7th low).

 Recommendation: Good to sell around 0.6530 with stop loss of 0.6600 and target price of 0.6460