AUD/USD seeking a new range - RBA Tomorrow

FXstreet.com (London) - In the clutches of activity across the dollar crosses where last week NFP's data fulled the greenbacks rally, The Aussie has in fact failed to break lower than 1.0200, nor could it break out higher through 1.0400 on last weeks attempt at the start of this month. There hasn't been much else in the way of other data to go by following the release of the Services PMI report in Australia which showed a very large drop from 49.6 to 44.1 in April – the data is more evidence of weakening domestic demand in Australia.

With conflicting data and sentiment keeping the pair range bound, eye's are on RBA decision and Thursday's job's data which might offer traders a green light to take the pair and finally establish a range one way or the other.

Though research teams at Westpack have said:

''We look for a steady RBA hand and large trade surplus but an uptick in unemployment probably keeps AUD/USD in its range''.

There is a strong case that suggests we may see further RBA easing which would allow the bears to jump on 2.0200 which would leave the AUD/USD rate vulnerable to further declines in this downward trending channel.

1.0194 would act as next support line and break of here may see a heavy fall targeting 1.0115. Resistances is 1.0313 ahead of 1.0385.