AUD/USD In sideways consolidation ahead of RBA

AUD/USD was uplifted today, supported by higher copper prices having marked daily high at 0.7956 and low at 0.7890. However the pair was unable to keep steady gains and entered into sideways consolidation just ahead of important macro events coming from Australia tonight. The trade balance data for December and January retail sales are due, but the highlight of the day will be the RBA meeting. It’s largely expected that the central bankers will keep unchanged the rates at 1.5%.

And expectations make Aussie weaker. Technically speaking the short term outlook for the pair remains bearish. On the four hour time frame the price is very close and is likely to break the support provided by the 38.2% Fibonacci retracement of latest bullish run around 0.7890, where today found bottom. RSI and stochastic are located within negative territories and both are showing bearish momentum.

In case of breaking the above mentioned level, next hurdle for bears is seen at 0.7850, followed by 0.7820. On the flip side first resistance comes at 0.7956 and second at 0.7985.