AUD/USD: Popping up on upbeat data; RBA approaches

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7756 with a high of 0.7767 and a low of 0.7750.

AUD/USD has popped up 10 pips on the positive data in the form of building permits in the main and the trade balance beating expectations. Building permits were 7.9% vs a much lower -1.8% consensus and even lower previous at -2.8%. Of course, the main event we are waiting for is the RBA later on in the day.

The consensus is slanting to the RBA keeping on hold for time being, but that means that the market will be gearing up for a cut in Q2 and any upside could be seen as an opportunity to get short and buy some cheap greenbacks as the market gets pro-risk. On the case that the RBA holds and Aussie rallies, the 21DMA is up ahead at 0.7794 as first resistance. However, given data supporting a need for the RBA to make a move, such as commodity prices continuing to slide (-20.6% on year to February), the market could be caught out and a continuation of the downside may come in on thick and fast supply, targeting 0.7620 key support.