AUD/USD grinding higher ahead of RBA Minutes, China GDP

  • Aussie trading slightly higher as the USD recedes.
  • Markets are spinning up their bullish sentiment, but heavy data looms ahead for the week.

The AUD/USD is trading softly ahead of a busy Asia session, testing near 0.7780.

The Aussie opened the new week on a sustained note as markets recovered from last week's Middle East tensions and drifted upwards slightly through Monday's action after reaching a session low of 0.7750.

AUD/USD analysis: Chinese data to decide whether the pair can break higher or not

Tuesday greets the Aussie with a Meeting Minutes Release from the Reserve Bank of Australia (RBA) at 01:30 GMT, where traders will be hoping to glean some insight into where the RBA is sitting on the dove/hawk scale, as well as when or if the central bank will ever decide to take action in either direction as the Australian economy lags behind global averages. Following that in short order will be a data dump from China expected at 02:00 GMT, with February Retail Sales and Industrial Production, along with quarterly Gross Domestic Product figures. The year-on-year GDP for China's first quarter is expected to print at 6.7 percent, a mild step lower from the previous reading of 6.8 percent.

AUD/USD Levels to consider

As FXStreet's own Valeria Bednarik noted earlier, " technically, the pair continues holding above a major Fibonacci support at 0.7740, the 61.8% retracement of the December/January rally, and as long as above it, chances are to the upside. In the 4 hours chart, the price settled above its moving averages, which lack directional strength, as well as technical indicators that hold above their mid-lines."

Support levels: 07740 0.7700 0.7765

Resistance levels: 0.7785 0.7820 0.7850

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