AUD/USD: Watch for a Reversal with RBA Decision

AUD/USD continues to hit new yearly highs as risk sentiment improves following the FOMC’s 50-basis-point rate cut last week and today’s Reserve Bank of Australia (RBA) meeting, where no rate change is expected.

However, a dovish tilt from the RBA meeting notes could shift the pair’s momentum, with the 200-Day Moving Average acting as a key level to watch. Also, keep an eye on the RSI, which is nearing the overbought zone at 70 on the daily chart.

Beyond the RBA decision later today, Australian inflation data is set for release tomorrow, with headline inflation expected to drop sharply from 3.5% to 3.1%.