AUD/USD rallies more than 1%, highest since May 2015

Dhwani Mehta FXStreet

The AUD bulls remain unstoppable following the release of hawkish RBA minutes, with the AUD/USD pair now extending the break higher to test 0.79 handle, the strongest levels seen since May 2015.

Aussie bond yields drop

The RBA minutes revealed that the policymakers remain upbeat on the economy, and markets believe that the next policy move could be very well a rate hike. This boosted the Aussie across the board, sending the core pair more than 1 big figure higher through the key upside barrier located at 0.7850 levels, only to proceed its course higher towards 0.79 handle.

The rebound in the Aussie can be also attributed to broad based US dollar weakness, after the Senate Republicans rejected Trump’s Healthcare bill yet again. The USD index slumps -0.38% to trade near fresh 10-month lows of 94.53.

Markets now await fresh fundamental catalysts for further momentum on the pair. In the meantime, the USD dynamics and hawkish RB minutes could continue to underpin the sentiment around the AUD/USD pair.

AUD/USD Technical Levels

Omkar Goldbole, Analyst at FXStreet explains, “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).”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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