Big day for the AUD coming up; the RBA decision on rates will be announced at 0330GMT. Until then, lets look at levels.
- 1.0500 there is talk of large barrier option, with buy stops above here. Will get quite volatile if 1.0510 breaks today
- 1.0470/80 is resistance ahead of the figure
- 1.0448/53 Minor resistance on the day here
- 1.0435/40 Sell orders yesterday held the topside; still AUD to go around here
- 1.0390/95 Buying here provided the low on Monday, tested twice, rebounded twice. Be wary of stops just below now
- 1.0340/50 is support
- 1.0290/00 Support, should we get this low
Once the rate decision is announced, be careful of picking a level and just sticking in an order – pre-existing levels can be rendered void by new information in the market as resting orders are pulled and plans reassessed. A lower-risk strategy is to first wait for a level to identify itself (usually by activity building there) before pulling the trigger.
