AUD/USD: Aussie lower on dovish RBA minutes, US Dollar strength
- AUD is on the back foot on dovish RBA minutes.
- The focus is now on Wednesday’s Australian wage data.
The AUD/USD is trading around 0.7890, in New York morning session, edging down by almost 0.2% on a broad recovery of the US dollar coupled with dovish minutes from the Reserve Bank of Australia (RBA) released earlier on Tuesday.
The RBA minutes said that rising AUD would impede pickup in the economic growth and inflation. However, the RBA minutes failed to provide any fireworks with the central bank sticking with its neutral tone. As such, AUD had been largely unmoved after the release of minutes with focus shifting on wage price index scheduled for Wednesday.
Wednesday’s wage growth is seen rising 0.5% on QoQ basis.
On the other side, USD was boosted on Tuesday with the US Treasury yields jumping up to 2.93% before the US Treasury auctions later in the day.
Technically, AUDUSD has now immediate support at around 0.7865 and sustaining below that it could further fall to 0.7755 zones. For any recovery, AUDUSD needs to sustain above 0.7950 for a further rally towards 0.7995-0.8055 price area in the days ahead.
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