AUD/USD consolidating the downside on Aus data, RBA in focus

Having bottomed just ahead of 10-DMA at 0.7516 in early trades, the AUD/USD pair is confined in a tight range, little changed on the Aus datasets as all eyes remain on the RBA decision for fresh impetus.

AUD/USD holds above 0.75 ahead of RBA

Currently, the AUD/USD pair trades almost unchanged at 0.7536, hovering within a striking distance of session lows struck at 0.7523 earlier on the day. The Aussie continue to consolidate the downside following the release of mixed Australian trade and building consents data, with the AUD now awaiting the RBA cash rate decision for next direction.

The Australian trade balance for June stood at -3.195 bn versus expected -2bn and prior -2.218bn. While the Building approvals data for June came in at -2.9% m/m vs. expected +0.8% and -5.2% last.

The AUD/USD pair also remains weighed down by poor risk tone persisting in the markets on the back of the recent oil-price slump. While increased nervousness ahead of the RBA decision also keeps a lid on the upside.

Looking ahead, markets are pricing in a strong chance that the RBA will slash the official cash rate to a record-low 1.5%, in a bid to revive inflation and fast-track an economic recovery amid the mining downturn.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7552 (5-DMA) above which gains could be extended to the next hurdle located at 0.7600 (round figure). On the flip side, the immediate support located at 0.7516 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7485/66 (50 & 100-DMA).