The movement of financial markets today is expected to slow as investors will take precautions to stay in the market to reduce trading risk.
However, the focus of this morning's Asian session was the Australian central bank policy meeting which was decided to be published at 11.30 am local time.
The Reserve Bank of Australia (RBA) is expected to lower its interest rate to its latest low of 0.10% after maintaining its previous low of 0.25% since March.
In addition, analysts see a strong possibility for the RBA to further increase policy easing by announcing additional government bond purchases.
If the published results meet market forecasts, the Australian dollar is expected to experience a significant depreciation effect.
As can be seen on the price chart for the AUD / USD pair, the price has shown an increase since the European session yesterday before slowing in the New York session after the price hit the support level of 0.7000.
The price hike is seen as an early signal by investors' reaction to today's expected depreciation of the Aussie dollar for investors to obtain higher price positions.
Failing to reach the 0.70800 level rise in the SBR (support become resistance) zone, the price is expected to plunge back to 0.70000 following the published RBA meeting results.
A lower drop above the support zone will push the price to record the latest 3-month low towards the level of 0.69300.
On the other hand, if the results of the RBA meeting are hawkish and support the strengthening of the Aussie dollar, the price will jump past the SBR zone of 0.70800 and the next bullish destination will be in the resistance zone of 0.71500-0.71800.
