AUD/USD has been very volatile and corrective recently showing no directional bias after the break below the 0.7750 area. Yesterday, RBA announced its policy decision, so the regulator maintained the cash rate unchanged at a record low of 1.50% as expected. The decision did not quite help USD to gain momentum against AUD till now and push the price lower. Today, the economic calendar lacks economic reports or events in Australia but on Friday RBA Monetary Policy Statement report is going to be published which is expected to be hawkish in nature. On the USD side, recently Fed Chair Yellen was quite neutral about the interest rates and future monetary policy that helped the US currency to gain some momentum but USD could not sustain it well enough. Today, USD Crude Oil Inventories report is going to be published which is expected to show a slight increase in deficit at -2.5M from the previous figure of -2.4M. As for the current scenario, USD is expected to gain momentum over AUD in the coming days as the US Fed is widely expected to raise interest rates in December, thus the market sentiment is currently slowly shifting in favor of USD.
Now let us look at the technical chart. The price is currently residing inside a medium-term corrective structure which is showing a bearish squeeze along the way. The dynamic level of 20 EMA is also showing a downward slope as the price remains below the resistance area of 0.7750-0.7850 area. As the price remains below the resistance area, despite the correction and volatility the pair is expected to move down towards 0.7500 support area in the coming days.
