- AUD/USD reverses from intraday high after unimpressive RBA Minutes.
- RBA Minutes for July suggest policymakers’ readiness for August rate hike, if needed.
- Cautious optimism, US-China news joins pre-data positioning to underpin AUD/USD run-up.
- US Retail Sales, risk catalysts eyed for clear directions ahead of Thursday’s Aussie job reports.
AUD/USD reverses from the intraday high to around 0.6815 after the Reserve Bank of Australia’s (RBA) July Monetary Policy Meeting Minutes, published early Tuesday. In doing so, the Aussie pair fails to cheer the downbeat US Dollar, as well as the risk-positive headlines surrounding China.
As per the RBA’s July month Monetary Policy Meeting Minutes, “board agreed some further tightening may be required,” adding that “they would reconsider at August meeting.”
With this, the Aussie pair pauses on the way to the 0.6900 upside hurdle amid cautious optimism in the market, backed by the hopes of improving the US-China ties and receding hawkish Feds. That said, Monday’s downbeat US NY Empire State Manufacturing Index for July joined the previous week’s disappointing US inflation outcomes to weigh on the US Dollar and underpin cautious optimism in the market.
It should be noted that US Climate Envoy John Kerry is in China to mark another effort by the Washington to improve the Sino-US ties. That said, the US policymaker met China’s top diplomat Wang Yi during early Tuesday while saying, per Reuters, “Our hope is now that this could be the beginning of new cooperation to solve the differences between us.”
Elsewhere, the US Dollar Index (DXY) drops to 99.76 while reversing Friday’s corrective bounce off the lowest level since April 2022 as the US statistics fail to inspire Fed hawks even as July rate hike is already given.
Amid these plays, S&P500 Futures appear indecisive while struggling to trace Wall Street’s gains whereas the US Treasury bond yields remain depressed and weigh on the US Dollar.
Looking ahead, US Retail Sales for June, expected to rise to 0.5% versus 0.3% prior, will be crucial to watch for clear directions of the AUD/USD. Also important will be the US Industrial Production for June, expected -0.1% versus -0.2% prior, as well as the US-China headlines and the bond market moves as Japan returns from a long weekend.
AUD/USD bounces off the 5-DMA level immediate support, around 0.6820 by the press time, to restore a run-up targeting the 0.6900 hurdle comprising tops marked in June-July.
Additional important levels
|Today last price||0.6833|
|Today Daily Change||0.0017|
|Today Daily Change %||0.25%|
|Today daily open||0.6816|
|Previous Daily High||0.6854|
|Previous Daily Low||0.6788|
|Previous Weekly High||0.6895|
|Previous Weekly Low||0.6624|
|Previous Monthly High||0.69|
|Previous Monthly Low||0.6484|
|Daily Fibonacci 38.2%||0.6813|
|Daily Fibonacci 61.8%||0.6829|
|Daily Pivot Point S1||0.6785|
|Daily Pivot Point S2||0.6753|
|Daily Pivot Point S3||0.6718|
|Daily Pivot Point R1||0.6851|
|Daily Pivot Point R2||0.6885|
|Daily Pivot Point R3||0.6917|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.