Levels to watch if the RBA is hawkish
How high can AUD/USD rise?
The Australian dollar has struggled for the past three months but it's risen for three straight days in a sign of life.
If the RBA hints at a better outlook for growth or inflation, then AUD/USD will almost surely rise above last week's highs to the best since Nov 13.
From there, it's fairly smooth sailing until the 200-day moving average at 0.7691. If that breaks, there is a tougher convergence of resistance at 0.7730. That's both the November high and the early-October low along with the 55-day moving average.
Baring a major hawkish shift, that zone should contain AUD/USD in the near-term so one option would be to sell a rally and use that as a stop.