The Australian Dollar (AUD/USD) traded near its 200-day moving average level of 0.7024 on Monday, as investors awaited the Reserve Bank of Australia's (RBA) interest rate decision scheduled for Tuesday. According to FX Street (Societe Generale), support is seen around 0.6975, with resistance near 0.7090, marking critical technical levels for the currency pair.
FX Street (Rabobank) noted that the RBA faces a challenging policy decision amid strong construction sector growth and historical parallels to previous oil shocks and inflation surges. Market expectations lean toward a rate hike, which has helped the Australian Dollar strengthen against major currencies except the US Dollar during the European session on Monday, FX Street reported.
For Japanese investors, movements in the AUD/USD ahead of the RBA meeting are significant, as shifts in commodity-linked currencies can influence risk sentiment and impact cross-asset strategies involving Asia-Pacific markets.