AUD/USD clocks fresh 2-year high on hawkish RBA minutes & US health care debacle

Omkar Godbole FXStreet Contributor

The demise of the US health care bill triggered a wave of selling in the USD, which pushed AUD/USD to a session high of 0.7841 levels (highest since June 2015).

The hawkish RBA minutes only added fuel to the fire. However, to a certain extent, the minutes are being dwarfed by the health care story, which is moving the FX markets as of now.

Aussie bond yields drop

The minutes may sound hawkish, although the Aussie bond yields are not impressed. The 10-year yield is down close to two basis points at 2.714%. Meanwhile, its counterpart is relatively strong, down less than one basis point at 2.3%.

Nevertheless, concerns that Trump would have a hard time pushing through the tax/fiscal reforms are forcing investors to move out of the US dollar.

AUD/USD Technical Levels

An end of the day close above 0.7831 (23.6% Fib R of 2011 high - 2016 low) would open door for a more sustainable rally towards 0.7938 (Mar 2015 high) and 0.80 (zero levels). On the downside, failure to hold above 0.78 (zero levels) could yield a pullback to 0.7773 (5-DMA) and 0.7740 (July 13 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	High
1H	Bearish	Oversold	High
4H	Bearish	Neutral	Low
1D	Bearish	Overbought	High
1W	Bullish	Overbought	Expanding
Updated Jul 18, 01:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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