The Reserve Bank of Australia is set to make its latest rate decision today and market expectation is elevated around the event. Although most of the market is expecting the bank to hold rates at 12-year highs recent high CPI data results have prompted some market participants to call for what would be a surprise hike. Most traders are looking for volatility around the statement and press conference with most of the risk sitting with a more hawkish outlook and topside potential for the Aussie. The currency is trading near recent multi-week highs and a hawkish hold should see it challenge those highs around 0.6650 and trendline resistance near 67 cents, whereas anything confirming that the next move will be a cut should see the pair return to lower levels and recent trading ranges.
Resistance 2 : 0.6708 – Long-term Trendline Resistance
Resistance 1 : 0.6650 – Multi-week Highs
Support 1 : 0.6547 – 200-Day Moving Average
Support 2 : 0.6370 – Long-term Trendline Support
