AUD/USD: higher or lower into the RBA meeting?

Currently, AUD/USD is trading at 0.7997, up 0.14% on the day, having posted a daily high at 0.8001 and low at 0.7956.

AUD/USD has been a small bid in the opening European and US sessions and remains so as the US session draws towards a close. Metals remained strong, following the Asian session spike in copper, supportive of the Australian dollar. US yields have been under pressure and the DXY is closing 0.42% down at the time of writing. 

Copper hit fresh high on Monday and ignores overbought technicals

The main events for the Aussie this week, from a domestic standpoint, comes in the RBA meeting today. While the RBA is expected to be on hold, the level of the currency could well be a theme for the meeting and as such, traders will be nervous of long positions heading into the meeting. The high for the year so far has been 0.8065. We also have the Chinese Caxin manufacturing data today, expected to arrive at 50.4.

RBA to hold this week, but watching value of Aussie - UOB

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart the price keeps hovering around a modestly bullish 20 SMA, whilst technical indicators have recovered, now barely above their mid-lines and with limited upward strength. "A surprise hawkish stance can push the pair beyond its immediate resistance at 0.8020, anticipating then a continued advance for this Tuesday," Valeria Bednarik noted.