Despite improvements in global risk sentiment and gains in key commodities, the Australian dollar remains under pressure after a mixed day of trading on Monday. The AUD had a quiet session, possibly a reflection of its dependence on Chinese markets which are closed for the remainder of the week. The Aussie opens at 0.7223 against the USD, 0.6238 against the Euro and 1.0916 against the NZD and fell 0.7% against the CAD.
Looking ahead to today’s session, traders will be closely w3atching the RBA’s October interest rate decision due out at 2:30pm AEST. With no chance of a movement in the cash rate, markets will be interested in the accompanying monetary policy statement with the bank’s view on economic growth, housing and labor markets not expected to surprise markets. Later in the week we will also see August trade balance numbers on Thursday and August retail sales on Friday with leading indicators suggestive of a soft read.
From a technical perspective, key levels of support are evident at 0.7200 and 0.7144 with resistance of the topside visible at 0.7255.