AUD/USD in search of a firm direction ahead of Tuesday's RBA decision
• Hangs closer to multi-month lows amid resurgent USD.
• Tuesday’s RBA announcement holds the key.
The AUD/USD pair seesawed between tepid gains/minor losses and remained within striking distance of multi-month lows touched recently.
The pair struggled to gain any traction and was being capped by the prevalent bullish sentiment surrounding the US Dollar. Despite Friday's smaller-than-expected rebound in the October jobs data, upbeat US ISM non-manufacturing PMI print, coming in at a 12-year high, underpinned the greenback.
Adding to this, the market remains convinced that the Fed would stick to its gradual monetary policy tightening path and might continue to collaborate towards keeping a lid on any meaningful recovery attempts for higher-yielding currencies - like the Aussie.
In the absence of any significant market moving economic releases from the US, the pair seems more likely to extend its consolidative price action ahead of the RBA decision during early the Asian session on Tuesday.
Technical levels to watch
Immediate support remains near 0.7640-35 area, below which the pair is more likely to extend the fall towards the 0.7600 handle en-route its next major support near the 0.7575 region. On the upside, sustained recovery beyond 0.7660 level could lift the pair back towards the very important 200-day SMA, currently near the 0.7700 handle.