AUD/USD testing lows near 0.8760

FXstreet.com (Edinburgh) - The Aussie dollar is trading on the soft camp against the greenback on Friday, pushing the AUD/USD back to intraday lows in the 0.8770/60 region.

AUD/USD all eyes on the RBA next week

Choppy week for the pair so far, meandering around a 100-pip range between 0.8710 and 0.8810 amidst the effervescence in the EM space and the recent decision by the Fed to taper its QE programme by $10 billion. In light of next week’s key RBA meeting, FX Trading Strategist Greg Gibbs commented, “It may sound somewhat less dovish on rates in line with higher Q4 inflation, some improvement in business conditions and a surging housing market… We see some upside risk for the AUD and rates on a somewhat less dovish sounding RBA, although the currency will be heavily influenced by the Chinese PMI released over the weekend”.

AUD/USD levels to consider

At the time of writing the pair is retreating 0.28% at 0.8762 and a dip beyond 0.8727 (low Jan.28) would aim for 0.8678 (low Jan.27) and finally 0.8660 (low Jan.24). On the upside, the next hurdle aligns at 0.8821 (high Jan.28) ahead of 0.8853 (high Jan.23) and then 0.8889 (high Jan.22).

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