AUD/USD extends consolidation above the 0.70 handle

  • AUD/USD consolidates Monday's gains in tight range.
  • RBA doesn't hint at another rate cut in the short-term.
  • US Dollar Index inches higher on the back of upbeat sales data.

The AUD/USD pair ignored the Reserve Bank of Australia's (RBA) meeting minutes during the Asian trading hours and extended its consolidation phase above the 0.70 handle before coming under a modest pressure and staging a technical recovery in the second half of the day. As of writing, the pair was trading at 0.7027, losing 0.17% on a daily basis.

In the minutes of its July meeting, the RBA reiterated that they were ready to cut rates again if needed and that the board would continue to monitor the labour market closely. Commenting on the RBA's publication, “We find no indication in the July RBA Minutes that the Bank is considering cutting rates again in the near term," TD Securities analysts said.

Later in the day, the data published by the U.S. Census Bureau revealed that retail sales in June expanded by 0.4% to beat the market expectation of 0.1%. Although the US Dollar Index extended its daily rebound and rose above the 97.30 mark on the back of the data, it failed to preserve its momentum as the Fed's monthly publication showed that industrial production stagnated in June.

At 17 GMT, FOMC Chairman Powell and Chicago Fed President Charles Evans' speeches will be looked upon for fresh impetus.

Technical levels to watch for


Today last price 0.7027
Today Daily Change -0.0012
Today Daily Change % -0.17
Today daily open 0.7039
Daily SMA20 0.6971
Daily SMA50 0.695
Daily SMA100 0.7021
Daily SMA200 0.7092
Previous Daily High 0.7041
Previous Daily Low 0.7011
Previous Weekly High 0.7026
Previous Weekly Low 0.6909
Previous Monthly High 0.7026
Previous Monthly Low 0.6831
Daily Fibonacci 38.2% 0.703
Daily Fibonacci 61.8% 0.7022
Daily Pivot Point S1 0.702
Daily Pivot Point S2 0.7
Daily Pivot Point S3 0.699
Daily Pivot Point R1 0.705
Daily Pivot Point R2 0.706
Daily Pivot Point R3 0.708



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