Today at 03:30GMT we’ll have one of the first central banks to hold their meetings during this week, as the RBA is expected to leave unchanged its cash rate at 1.50%, which had been untouched since August. Because of current forecasts, it’s likely that the markets will be watching closely the Chinese data, such as the Manufacturing PMI (50.4 vs. 50.4) and Non-Manufacturing PMI (53.7); both for October. If data comes above the expectations, then we can expect a bullish reaction by the Australian Dollar across the board.
Our technical view for AUD/USD at H1 chart is calling for a bearish continuation, as the pair has been trading in that bias since October 26th, but currently, we’re seeing some corrective moves taking place. As of our Fibonacci retracement’s projection, eventually, it can cling towards the 61.8% level around 0.7650, which could be a strong resistance. However, if RBA statement and/or Chinese data brings some dovish hints for the Aussie economy, then a breakout below the 0.7560 is expected to happen.
Origin: FX BAZOOKA
