- AUD/USD trades largely unchanged at the time of writing after making a days low at 0.7314.
- The pair hit fresh yearly lows at 0.7310 overnight before paring some losses to close at 0.7336.
- Focus now on the Reserve Bank of Australia's (RBA) policy meeting due later today.
- The central bank is widely expected to remain on hold at 1.5% today and is anticipated to remain frozen on rates for the foreseeable future.
- Focus however will be on the statement that follows which could impact price action.
- Technical analysis support downside in the pair. But bullish divergence on RSI and Stochs calls for caution.
- Break below 61.8% Fib will drag the pair down to 0.7160 levels. On the flipside, breakout above 21-EMA could see test of daily cloud.
- On the data front, we have May retail sales, building approvals and the trade balance to watch out for.
Support levels - 0.7327 (nearly converged trendline 61.8% Fib), 0.7160 (Dec 2016 low), 0.71 (78.6% Fib)
Resistance levels - 0.7353 (5-DMA), 0.74, 0.7433 (21-EMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -0.447215 (Neutral), while Hourly USD Spot Index was at 30.8874 (Neutral) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
