AUD/USD: Levels to watch if the RBA is dovish

Technical Analysis

Author: Adam Button | audusd

RBA decision is coming up

The RBA decision is due at the bottom of the hour.

The RBA has consistently leaned against AUD strength over the past year or so. The statement is likely to continue to read "the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time."

If the RBA shifts to the dovish side, expect a swift AUD/USD decline with today's low of 0.7602 the first likely to give way. The minor recent uptrend and last week's low of 0.7550 would be squarely in the crosshairs.

The big level beyond that to watch would be the November low of 0.7531. If that gives way, it would indicate a very dovish statement and a huge surprise. Technically, it would open the way up to a major further decline.