AUD/USD Price Forecast: Key trigger is RBA’s policy on Tuesday
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Friday after a vertical sell-off in the last two trading days. In the European trade, the Aussie pair is slightly higher to near 0.7020 after finding cushion at around 0.7000.
The AUD/USD exchange rate is currently trading near 0.7020 following a sell-off over the past two trading days, with the pair finding support around 0.7000. In the past few weeks, the Australian Dollar has underperformed as traders have grown confident in the Federal Reserve's interest rate hikes. However, the next major trigger for the Aussie pair is the Reserve Bank of Australia's (RBA) monetary policy announcement on Tuesday.
Recent upbeat Australian job data for August has increased the odds of a 25 basis points rate hike to 4.60% next week, as priced in by strategists at Brown Brothers Harriman. The technical analysis shows that AUD/USD is trading below key support levels, including the 20-period EMA and Fibonacci retracements, suggesting building downside momentum.
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