AUD/USD Analysis: easing ahead of RBA Meeting's Minutes
|AUD/USD Current price: 0.7131
- The RBA Minutes would likely offer a dovish stance from policymakers.
- Base metals advanced, limiting Aussie's decline this Monday.
The Australian dollar started the day advancing against its American rival amid optimism related to US-China trade progress, although the pair trimmed daily gains and turned negative ahead of London's close. Metals traded higher this Monday, with copper adding 0.3% daily basis and spot gold reaching a fresh yearly high of $1,327.60 a troy ounce, maintaining the AUD/USD pair above the 0.7100 figure. The upward movement was irrelevant considering the pair peaked for the day at 0.7160, barely 25 pips away from Friday's close. There were no macroeconomic releases during the past Asian session, although in the upcoming one, the RBA will release the Minutes of its latest meeting. The document is expected to reflect the shift toward a more dovish stance, amid increased concerns about the housing sector's performance.
The 4 hours chart shows that the pair struggled around its 100 DMA for most of the day before finally giving up, now closer to a mild bullish 20 SMA. Technical indicators in the mentioned time frame have eased from their daily highs, the RSI heading nowhere around 53 and the Momentum easing within positive levels, skewing the risk to the downside without confirming it. For the pair to turn bearish, the 0.7070 level should give up.
Support levels: 0.7100 0.7070 0.7030
Resistance levels: 0.7145 0.7190 0.7225
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