Aussie holds in red ahead RBA policy meeting
The Australian dollar remains at the back foot and extends pullback from Oct 27 recovery high at 0.6522, into third consecutive day, pressured by renewed risk aversion.
Violation of pivotal Fibo support at 0.6387 (38.2% of 0.6170/0.6522 upleg) faces headwinds from 10/20DMA bull-cross (0.6359), with break lower to add to reversal signals, although daily studies are mixed.
Larger pictures (weekly / monthly) maintain firm bearish structure, however, overbought conditions and formation of monthly long-legged Doji, adds to mixed outlook.
RBA policy meeting and China’s Caixin manufacturing PMI are in focus as key events on Tuesday and could provide fresh direction signals.
The central bank of Australia is expected to raise its interest rate by 25 basis points to 2.85%, while manufacturing PMI is expected to rise to 49.0 in Oct from 48.1 in September.
Res: 0.6426; 0.6439; 0.6479; 0.6522
Sup: 0.6346; 0.6304; 0.6272; 0.6253