RBA Takes Centre Stage

AUD/USD see-sawed Monday as participants eyed gyrations in broader risk appetite and prepared for today's RBA monetary policy decision. The rate finished the day marginally below neutral levels.

• Recall that the RBA's recent inaction when it comes to enforcing its YCT mechanism has inspired wide speculation that policymakers will drop their yield targeting scheme. See our full preview for more colour around today's meeting.
• As a reminder, liquidity will be thinned by the Melbourne Cup event in the wake of the RBA decision.
• Separately, RBA Dep Gov Debelle will address the online Impact X Sydney Summit.
• Looking further afield, Australia's building approvals are due Wednesday, while trade balance and retail sales come out Thursday. On Friday, the RBA will release their latest SoMP.
• AUD/USD last sits at $0.7522, just shy of unchanged levels. Losses past Oct 22 low of $0.7454 would prompt bears to set their sights on $0.7288, which limited losses on Oct 8. Conversely, a jump above the 200-DMA/50% retracement of the Feb - Aug sell-off at $0.7556/57 would expose Jul 6 high of $0.7599.