AUD/USD climbs above 0.7760 ahead of RBA's policy announcements

  • AUD/USD gained traction in the second half of the day.
  • US Dollar Index looks to close the day deep in the red.
  • Focus shifts to Reserve Bank of Australia's monetary policy announcements.

The AUD/USD pair moved sideways in a relatively tight range above 0.7700 and gathered bullish momentum during the American trading hours. As of writing, the pair is trading at a fresh daily high of 0.7764, rising 0.65% on a daily basis.

At the start of the week, the USD's market valuation remained the primary driver of AUD/USD's action. With risk flows returning to markets on Monday, the US Dollar Index (DXY) turned south and extended its slide in the second half of the day pressured by falling US Treasury bond yields.

The data from the US showed that the ISM Manufacturing PMI in April edged lower to 60.7 from 64.7 in March, compared to analysts' estimate of 65. Although investors largely ignored this report, the benchmark 10-year US T-bond yield fell more than 2% and the DXY  dropped below 91.00.

Furthermore, major equity indexes opened in the positive territory and allowed risk-sensitive AUD to continue to outperform its American counterpart.

Focus shifts to RBA

In the early trading hours of the Asian session, the Reserve Bank of Australia (RBA) will announce its Interest Rate Decision and publish the Rate Statement. 

Previewing the RBA event, "we continue to expect the cash rate to remain unchanged until 2024 and expect a full AUD100bn extension of quantitative easing (QE) beyond the second round," said UOB Group economist Lee Sue Ann. "That said, we think that Yield Curve Control (YCC) may not be extended past the April 2024 bond, with the RBA no longer able to credibly commit to rates staying at 0.10% beyond this point."

Technical levels to watch for


Today last price 0.7764
Today Daily Change 0.0048
Today Daily Change % 0.62
Today daily open 0.7716
Daily SMA20 0.7709
Daily SMA50 0.772
Daily SMA100 0.7703
Daily SMA200 0.7465
Previous Daily High 0.7785
Previous Daily Low 0.7696
Previous Weekly High 0.7819
Previous Weekly Low 0.7696
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.773
Daily Fibonacci 61.8% 0.7751
Daily Pivot Point S1 0.768
Daily Pivot Point S2 0.7643
Daily Pivot Point S3 0.759
Daily Pivot Point R1 0.7769
Daily Pivot Point R2 0.7822
Daily Pivot Point R3 0.7859



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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


XAU/USD rallies back closer to multi-month tops, around $1,840 region

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. 

Gold News

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more