AUD/USD analysis: consolidative phase, waiting for next catalyst

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7654

RBA meeting Minutes showed policymakers are gaining confidence on the economic recovery.
AUD/USD contained below 0.7700, needing fresh clues for next direction.

The AUD/USD pair gave back its recent gains on resurging dollar demand and weaker commodities mid-US afternoon, after another failed attempt to regain the 0.7700 level at the beginning of the day. The pair surged to 0.7683 after the RBA meeting Minutes were seen more hawkish than previous one. Policymakers maintained their monetary policy unchanged, but sounded more confident on the domestic growth, with recent employment and inflation data backing their optimism. Concerns about wage growth, however, remain high. The pair fell down to 0.7645 but bounced from the level as the greenback lost its short-term upward momentum. The Australian macroeconomic calendar will remain empty this Wednesday, with sentiment probably leading the way then. The pair seems to have found a comfort zone between 0.7630 and 0.7700 after recovering from a multi-month low of 0.7503, now waiting for the next catalyst that could determinate whether this latest recovery has been corrective or not. Short term, the pair retains its neutral stance for a fourth consecutive trading day, with the 4 hours chart showing that indicators have now settled around their mid-lines, as the price hovers below a horizontal 20 SMA.

Support levels: 0.7640 0.7600 0.7570

Resistance levels: 0.7700 0.7730 0.7770

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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