AUD/USD analysis: waiting for dovish RBA Meeting's Minutes

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7419

Market has already priced in a soft stance from Governor Lowe & Co.
The sour tone of commodities weighed on the Aussie.

The AUD/USD pair hovered around 0.7420, unable to find direction and as many of its counterparts, spent the day in a very limited range. The pair peaked at 0.7441 at the beginning of the day, as there was some follow-through to Friday dollar's selling, but mixed Chinese data and the sour tone of commodities capped the upside for the Aussie. According to the official releases, Chinese GDP was up in the second quarter of the year 1.8%, beating expectations of 1.6%. The yearly reading came as expected at 6.7%, below the previous 6.8%. Also coming from China, Retail Sales grew 9.0% in June, in line with market's forecast, while May Industrial Production posted a 6.0% increase, missing expectations of 6.5%. The Reserve Bank of Australia will release the Minutes of the latest meeting during the upcoming Asian session. On that meeting, the RBA removed the removed warnings about the strength of the local currency, and for a second consecutive meeting, skipped the line indicating that the next move will rather be up than down." The central bank also expressed its concerns about global trade woes that can affect local economic growth, so investors are heading into the event expecting a dovish stance. Meanwhile, the pair maintains a short-term neutral stance, as in the 4 hours chart, is trading above directionless 20 and 100 SMA, while below a slightly bearish 200 SMA, as technical indicators erased their early gains and hover now around their midlines.

Support levels: 0.7400 0.7370 0.7330

Resistance levels: 0.7450 0.7490 0.7520

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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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