RBA preview - what to expect in AUD/USD?

Currently, AUD/USD is trading at 0.7472, up 0.01% on the day, having posted a daily high at 0.7478 and low at 0.7467.

Wall Street shrugs of Italian rejection of constitutional reforms, new record highs

AUD/USD has been a strong performer as safe havens were sold-off while the markets takes the Italian referendum in its stride, shrugging off the constitutional reforms. AUD/USD has rallied from 0.7413 and reached a high of 0.7497 before offered protecting the 0.75 handle blocked the bull's efforts until current spot as the market now steps of the gas ahead of the RBA decision today an accompanying statement.

Summertime RBA to chill out again?

The RBA is likely to remain on hold at the scheduled meeting with announcements due at 0330 GMT. However, as usual, the statement will be what the market will be trading on and comments regarding the labour market and wages, developments in trade, the price of the Aussie and inflation will be key of course. However, there could be mention of the GDP growth prospects with Q3 data due tomorrow and there are not tipped to be too great. 

AUD/USD levels to monitor

AUD/USD is making hard work of the 38.2% retracement at 0.7490 and is holding below here. It is unlikely that there will be much in this for the Aussie to really take off above there, unless there is a huge change of wording and rhetoric in the statement.

For now, with spot trading at 0.7472 at time of writing, we can see next resistance ahead at 0.7478 (Daily High), 0.7478 (Daily 20 SMA), 0.7480 (Daily Classic R1), 0.7483 (Weekly High) and 0.7500 (Yesterday's High). Support below can be found at 0.7472 (Daily Open), 0.7467 (Daily Low), 0.7458 (Hourly 20 EMA), 0.7441 (Daily Classic PP) and 0.7440 (Weekly Classic PP).

Below this cluster of near-term levels, we have the 0.7312/10 mid June low and the 78.6% Fibonacci retracement at 0.7287/81. Valeria Bednarik, chief analyst at FXStreet explained that the Short term outlook and in the 4 hours chart, the pair has bounced from its 20 SMA, now turning modestly higher, while technical indicators have lost upward strength within positive territory. "The 200 EMA in this last time frame stands at 0.7510, the level to surpass to confirm further advances towards the 0.7600 price zone."