AUD: Oversold ahead of RBA decision?

This week, the Reserve Bank of Australia (RBA) is holding its final board meeting of the year to decide on the cash rate.

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Those anticipating a rate cut from the RBA might have to wait until next year though as underlying inflation remains too high.

ANZ and Westpac expect cuts in May. NAB projects cuts will happen in the June quarter. The Commonwealth Bank, however, continues to forecast a cut in February.

AUD/USD’s decline resumed last week, extending from the start of the month. This movement has pushed the Relative Strength Index (RSI) toward oversold territory, indicating potential for a short-term rebound. The next significant support level is possibly around 0.6360.