AUD/USD analysis: holding on to gains ahead of RBA Meeting's Minutes
|AUD/USD Current price: 0.7135
- RBA Meeting's Minutes expected to offer little of note.
- Aussie benefited the most from sharp rises in base metals' prices.
The AUD/USD pair hit 07143, a fresh 2-week high on the back of dollar's weakness, finding additional support in a better performance of European and US equities, following plummeting Asian ones. Moreover, base metals were sharply up, with gold prices hitting fresh 3-month highs, copped adding over 2.8%, and aluminum up over 1.0%, further backing Aussie's rally. The strong static resistance area, however, capped the pair's advance. Australia is set to release this Tuesday the Westpac Leading Index for September, latest at 0.1%, while the RBA will unveil the Minutes of its latest meeting. Little of note is expected, as the central bank has kept rates unchanged at record lows for over two years now.
The short-term technical picture offers a mixed outlook, given that in the 4 hours chart, the price is above a bullish 20 SMA but below bearish 100 and 200 SMA, with the distance between moving averages shrinking and the price trapped in-between, a sign that clearer definitions are not far away. Technical indicators in the mentioned chart retreated from daily highs, but hold within positive ground, limiting chances of a downward extension, at least as long as the price holds above the 0.7080/90 price zone.
Support levels: 0.7085 0.7040 0.7010
Resistance levels: 0.7140 0.7175 0.7200
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