AUD/USD continues lower as the week opens, RBA rate decision due this week

• Aussie down 1.4% last week against the Greenback
• RBA interest rate, policy statement later this week

The Aussie opened the new week down again against the US Dollar, breaking below the 0.7900 handle in the early markets. AUD/USD has had a poor showing recently, sliding 1.4% over the past week as mixed data from the Australian continent continues to push out expectations of rate hikes from the Reserve Bank of Australia. That theme of Aussie weakness appears set to continue into the new week ahead of the RBA's interest rate decision this week, barring any positive surprises from the economic data to trickle out of the island country over the next few days.

The RBA will be publishing their first interest rate decision of the year at 03:30 GMT on Tuesday, where a hold on rates will come as little surprise to markets, pricing in a hold pattern for the RBA well into next year. The RBA's Governor Philip Lowe will be speaking at 09:00 on Thursday, where traders can hope to glean some extra insight into the central bank's plans ahead of the official monetary policy statement due at 09:00 on Friday.

AUD/USD Technicals

The bearish move on the Aussie may have bitten off more than it could chew on Daily charts, with Friday's fall leaving the pair very overextended compared to recent volatility, and price may find new support from the 34 EMA sitting right at the 0.7900 level, while technical indicators have hit their peak sell stride, with the MACD and RSI indicators moving solidly into their sell signal levels. The immediate challenge for price now will be to decidedly capture and hold the 0.7900 handle long enough for shortsellers to gather themselves up for the next leg down.

Today's pivot points:
R2: 0.8087
R1: 0.8004
PP: 0.7961
S1: 0.7878
S2: 0.7835