Australian dollar nears resistance after climbing on retail sales report

Technical Analysis

Author: Adam Button | audusd

RBA decision coming up next

The Reserve Bank of Australia is the main ticket in today's trading. We still have a couple hours until the headlines hit.

In the meantime, AUD/USD has climbed to the top of the recent range. The best level so far today is 0.7633 which puts it just below the highs from last week of 0.7639 and 0.7645.

The gains came after strong October Australian retail sales. They rose 0.5% compared to 0.3%.

The climb might also reflect more on an expectation of a hawkish or optimistic bias rather than the data. Bets are likely coming in on the RBA that wanted to avoid the risk of a soft retail sales number.

In any case, watch out for a squeeze on a rise above those levels.