AUD/USD: Bulls keep 0.7000 on radars ahead of RBA interest rate decision


  • AUD/USD probes the upper-end of 0.6968-88 trading range after six days of consecutive rise.
  • Broad risk-on mood, upbeat second-tier Aussie data offered the pair a positive start to the week.
  • RBA is widely anticipated to hold the current monetary policy unchanged, rate statement could offer immediate direction.
  • Qualitative catalysts will be the key amid a light calendar past-RBA.

AUD/USD remains on the front foot around 0.6975, probing the resistance of the immediate trading range, at the start of Tuesday’s Asian session. That said, the aussie pair seesaws near the highest levels since June 11, flashed the previous day, while also extending the six-day winning streak.

Upbeat data backs risk-on mood to keep the bulls hopeful…

The hopes of further stimulus and an upbeat performance by Chinese equities initially triggered the market optimism during Monday’s Asian session. The trade-positive mood got an additional mood when Australia’s TD Securities Inflation and ANZ Job Advertisements for June came out stronger than expected -1.2% and -0.3%, MoM, to +0.6% and +42.0% respectively. Additionally, the US ISM Non-Manufacturing PMI’s jump back into the expansionary territory, with 57.1 mark versus 50.1 forecast, in June also brightened the mood.

On the contrary, worsening coronavirus (COVID-19) conditions in the US and some parts of Australian, including Melbourne, tamed the optimists. Countering that, China’s Global Times (GT) recently came out with the news suggesting a third trial of the vaccine in Brazil developed by Beijing. Also in the line was the escalating tension between Australia and China as well as among Beijing and Washington. The Dragon nation’s hard stand against Canberra, for pushing investigations on the virus outbreak, pushed markets to rethink over the Aussie-China trade pairing. On the other hand, the US President held back sanctions over the Hong Kong security law but White House suggested a few more punitive measures are in the pipeline. Furthermore, the US aircraft headed to the South China Sea for exercise and suggest further noise between the world’s top two economies.

Against this backdrop, Wall Street welcomed the US traders, after Friday’s off, with a huge smile and NASDAQ’s rise to the record high. Also portraying the upbeat sentiment were the US 10-year Treasury yields that inch close to 0.7000 with near two basis points of a rise.

Moving on, today’s monetary policy meeting by the Reserve Bank of Australia (RBA) becomes the key even if the Aussie central bank isn’t expected to alter the current interest rate neither bond buying. The reason could be spotted in the Australian dollar’s (AUD) strength as well as the Pacific giant’s likely decoupling with China. A mentioning of that might offer a pullback into the currency pair while a song with an upbeat tune could keep quote positive towards a multi-month high.

Read: Reserve Bank of Australia Preview: Policymakers to remain cautiously optimistic

It should be noted that there are no major data/events from the US, except for JOLTS Job Opening for May, expected 4.85M versus 5.046M, which in turn could keep the virus and Chine related news in the driver’s seat.

Technical analysis

The AUD/USD pair’s ability to cross the mid-June top surrounding 0.6975 enables it to pierce 0.7000 threshold. Though, the multi-month high of 0.7065, flashed on June 10, could challenge the quote’s further upside. Meanwhile, 21-day SMA near 0.6905, followed by 0.6900 round-figures, will offer immediate support ahead of a three-week-old support line near 0.6850.

Additional important levels

Overview
Today last price 0.6972
Today Daily Change 30 pips
Today Daily Change % 0.43%
Today daily open 0.6942
 
Trends
Daily SMA20 0.6904
Daily SMA50 0.671
Daily SMA100 0.6512
Daily SMA200 0.6671
 
Levels
Previous Daily High 0.6949
Previous Daily Low 0.6912
Previous Weekly High 0.6953
Previous Weekly Low 0.6832
Previous Monthly High 0.7065
Previous Monthly Low 0.6648
Daily Fibonacci 38.2% 0.6935
Daily Fibonacci 61.8% 0.6926
Daily Pivot Point S1 0.692
Daily Pivot Point S2 0.6898
Daily Pivot Point S3 0.6884
Daily Pivot Point R1 0.6956
Daily Pivot Point R2 0.6971
Daily Pivot Point R3 0.6993

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD nears 1.19 amid mixed US data

EUR/USD is trading close to 1.19, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields. The ISM Non-Manufacturing PMI beat with 58.1. 

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.

GBP/USD News

ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures