The currency has been printing higher highs and higher lows against the USD for nearly 7 successive weeks now, having touched a recent 6-month high around 1.0790. Overnight, AUD/USD consolidated below the mentioned high, operating between 1.0680 and 1.0763, ending the day lower at 1.0723, 25 pips below its starting price.So far in the Asia-Pacific session the paring is unchanged, hovering around 1.0720, as investors await the widely anticipated RBA rate decision.

From a technical standpoint, Fan Yang, CMT, Chief Technical Strategist at FXTimes.com observes: “At the moment, we can see 1.0750 acting as resistance. A bearish outlook in the short-terms opens up if 1.0680 is broken as support. This can form a head and shoulder for a short-term decline toward 1.06. Note in the 4H chart that this would be a testing of the rising support, which is actually at 1.0525 right now. For now 1.06 and 1.0525 should be the maximum bearish outlook, in consideration of the fact that AUD/USD has been trending up for almost a couple of months now.”

Mon, Feb 06 2012, 23:14 GMT | FXstreet.com