AUD/USD Forecast: Waiting for the RBA Meeting Minutes

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7292

Rising gold and equities fell short of triggering buying interest.
The Reserve Bank of Australia will provide further details on its latest decision.
AUD/USD is mildly bullish in the short-term, needs to break above 0.7310.

The AUD/USD pair remained within familiar levels this Monday, ending the day little changed in the 0.7290 price zone. The pair posted a modest advance during US trading hours despite rising equities, as the American currency got to recover some ground at the same time. The Aussie also refused to move, despite gold prices were also up. Nevertheless, it also seems as speculative interest doesn’t want to push the price beyond the 0.7300 threshold, somehow anticipating the pair is close to an interim top.

All eyes now turn to the RBA Meeting Minutes that will be out during the upcoming Asian session. Policymakers kept rates on hold at a record low of 0.25% earlier this month, and repeated that the economic downturn “is not as severe as earlier expected and a recovery is now under way in most of Australia.” It seems unlikely that today’s document would impact the market, although investors may react to the current risk-on mood after the RBA is done. Worth noting that China will publish August Industrial Production and Retail Sales for the same month.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral-to-bullish in the short-term, lacking enough momentum to confirm an upcoming advance. In the 4-hour chart, the pair is developing a few pips above a mildly bullish 20 SMA, which advances above the 100 SMA. Technical indicators, however, have turned lower and stand within neutral levels. The pair needs to break above 0.7310, the immediate resistance level, to become more attractive for bulls.

Support levels: 0.7250 0.7215 0.7170

Resistance levels: 0.7310 0.7350 0.7385

View Live Chart for the AUD/USD

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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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