Recovers Some Losses, RBA Awaited

Spot AUD/USD gained on Monday, recovering some of its losses from last week. The pair touched session highs of 0.7787 before pulling back slightly into the close. The pair is slightly softer at the start of Asia, last down 4 pips at 0.7769.

• It has been an active session for data so far:
  • Australia Jan. Building Approvals -19.4% M/M; Est. -2.0%
  • Australia Q4 Current Account Balance A$14.5b; Est. A$13.0b
  • Australia Q4 Net Exports Cut 0.1% Pts From GDP; Est. -0.3%
  • Australia Jan. Private-Home Approvals Fall 12.2% M/M
  • Australia Q4 Govt Consumption To Add 0.2% Pt To GDP
  • Australia Q4 Govt Investment To Add 0.1% Pt To GDP
• From a technical perspective AUD/USD remains vulnerable following last week's sharp sell-off from 0.8007, Feb 25 high. Price action has so far managed to find support at the 50-day EMA that intersects at 0.7693. A clear break of the average would signal scope for a deeper pullback and open the 0.7600 handle and potentially below. Initial resistance is at 0.7883, Friday's high with the bull trigger for a resumption of gains defined at 0.8007.
• Markets await the RBA rate announcement at 0330GMT/1430AEDT. MNI RBA Preview - March 2021: Stabilising After Test Of Resolve