AUD/USD Forecast: Eyes on RBA Meeting Minutes

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6950

The Reserve Bank of Australia will publish the Minutes of its latest meeting on Tuesday.
The American dollar retreated modestly in a slow start to the week.
AUD/USD is turning bearish in the near term, could accelerate the slide once below 0.6910.

The AUD/USD pair trades with a soft tone around 0.6950 ahead of the Asian opening, holding on to modest intraday gains. The greenback spent the day on the backfoot but regained some ground at the end of it, despite a holiday in the US keeping local markets closed. Absent demand for the greenback throughout the first half of the day helped AUD/USD reach an intraday high of 0.6995.

Trading was dull as, besides the holiday in the US, the macroeconomic calendar remained scarce. The Reserve Bank of Australia will publish the Minutes of its latest meeting. In early June, the central bank surprised financial markets by raising the cash rate by 0.50% and bringing it to 0.85%. The focus will be on whether policymakers are willing to maintain the pace to deal with inflation. Hints on upcoming aggressive moves should boost the aussie.

AUD/USD short-term technical outlook

The AUD/USD pair is hovering around the 23.6% retracement of its latest daily decline between 0.7282 and 0.6850 at the current price zone. The daily chart shows that technical indicators remain directionless well into negative levels, while the 20 SMA turns south around the 0.7100 level. The longer moving averages, in the meantime, stand well above the shorter one and near the upper end of the mentioned range.

In the near term, and according to the 4-hour chart, the case of a bearish extension increased. Technical indicators are gaining downward traction below their midlines, as the 20 SMA provides intraday resistance at around 0.6980.

Support levels: 0.6910 0.6880 0.6845

Resistance levels: 0.6885 0.7030 0.7070

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.