AUD/USD pulls away from daily highs, steadies above 0.7700 ahead of RBA Minutes


  • AUD/USD loses traction after edging higher in early American session.
  • US Dollar Index extends sideways grind around 90.50.
  • Reserve Bank of Australia will release June Meeting Minutes on Tuesday.

The AUD/USD pair reached a daily high of 0.7726 during the American trading hours but struggled to preserve its bullish momentum. As of writing, the pair was up 0.03% on a daily basis at 0.7710.

Eyes on RBA Minutes

In the absence of significant fundamental drivers and macroeconomic data releases, AUD/USD is having a difficult time making a significant move in either direction on Monday. Reflecting the subdued market action, the US Dollar Index remains on track to close little changed around 90.50.

Meanwhile, Wall Street's main indexes are trading mixed at the start of the week, not providing a clue regarding the risk perception. Currently, the S&P 500 is down 0.3% while the Nasdaq Composite is rising 0.4%.

In the early Asian session on Tuesday, the Reserve Bank of Australia (RBA) Meeting Minutes will be looked upon for fresh impetus. 

In a recently published report, analysts at Bank of America Global Research argued that the RBA will update its policy guidance at its next meeting on July 6. 

"Considerable stimulus will likely remain in place," analysts further added. "A more open-ended third round to QE is more likely to commence at the current pace of AUD5bn per week where RBA purchases would reach AUD60bn after 3 months. An extension of QE would help to keep net ACGB supply negative in the new fiscal year and help to temper 10yr swap spread tightening."

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7709
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 0.7708
 
Trends
Daily SMA20 0.7741
Daily SMA50 0.7735
Daily SMA100 0.7727
Daily SMA200 0.7546
 
Levels
Previous Daily High 0.7776
Previous Daily Low 0.7687
Previous Weekly High 0.7794
Previous Weekly Low 0.7687
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.7721
Daily Fibonacci 61.8% 0.7742
Daily Pivot Point S1 0.7671
Daily Pivot Point S2 0.7635
Daily Pivot Point S3 0.7582
Daily Pivot Point R1 0.776
Daily Pivot Point R2 0.7813
Daily Pivot Point R3 0.7849

 

 

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