AUD/USD: RBA in focus and 0.80 handle double top caps

Currently, AUD/USD is trading at 0.7947, down -0.28% on the day, having posted a daily high at 0.7975 and low at 0.7943.

AUD/USD remains within a drift to the downside, testing the opening bearish gap levels that were under pressure overnight on the N.Korea news. The Us is on holiday today, so all eyes are on the RBA that is expected to leave the cash rate at 1.5%. There will be an accompanying RBA statement and Lowe also speaks at 0915GMT. For the near term, the attempts for the 0.80 handle have petered out and the double top is well formed.

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AUD/USD 1-3 month:

"If the RBA remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end," analysts at Westpac argued.

AUD/USD levels

"AUD/USD has continued to recover from the 3-month uptrend at 0.7888 (redrawn), intraday Elliott wave counts imply that the market will struggle to make further headway. Below the uptrend lies the 0.7808 current August low, which guards good support at 0.7748/41. It is where the February and March highs are located and while above here the market will remain bid." explained analysts at Commerzbank.