The AUD/USD pair continued gaining traction through mid-European session and is currently placed at fresh one-week tops, around mid-0.7800s.
The pair shrugged off today's cautious RBA Financial Stability Review report and built on previous session's bullish break above 100-day SMA hurdle, despite a modest US Dollar recovery.
A minor rebound in the US Treasury bond yields helped the greenback to recover early lost ground, but did little to dent demand for higher-yielding currencies - like the Aussie.
Meanwhile, the prevalent positive trading sentiment around commodity space, especially copper, which tends to underpin demand for commodity-linked currencies, remained supportive of the pair's bid tonefor the fourth consecutive session.
It, however, remains to be seen if the pair is able to extend the up-move or runs through some fresh offers at higher level amid some repositioning trade ahead of today's key inflation figures from the US.
• US Sep CPI: Headline prices likely to increase 0.5% overall - Westpac
Apart from the headline CPI, today's US economic docket also features the release of monthly retail sales and Prelim UoM Consumer Sentiment Index, which along with Fedspeaks would help determine the pair's next leg of directional move.
Technical levels to watch
A follow through buying interest beyond 0.7860 level should continue lifting the pair further towards the 0.7900 handle ahead of 50-day SMA hurdle near the 0.7915 region.
On the downside, any pull-back below the 0.7835-25 region now seems find support at 100-day SMA near the 0.7800 handle, which if broken would turn the pair vulnerable to head back towards retesting mid-0.7700s support.
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.
Recommended content
Editors’ Picks
USD/JPY advances toward 149.50 ahead of crucial BoJ policy decision
USD/JPY is rising toward 149.50 in the Asian session on Tuesday, picking up fresh bids. Traders keenly await the highly-anticipated Bank of Japan policy decision. The BoJ's outlook on the negative interest rate policy and the Yield Curve Control (YCC) will play a key role in influencing the Japanese Yen.
AUD/USD creeps lower to test 0.6550 ahead of RBA’s decision
AUD/USD is grinding lower to test the 0.6550 level in Asian trading on Tuesday. The Aussie Dollar stays on the defensive against the US Dollar as markets prepare for the Reserve Bank of Australia's extended pause but the Bank's rate outlook will hold the key.
Gold awaits Bull Flag confirmation and central banks’ verdicts
Gold price is holding the previous rebounding in Asian trading on Tuesday, as buyers take a breather ahead of the upcoming key central banks’ policy decisions. The US Dollar is stretching higher amid a risk-averse market environment, shrugging off some weakness in the US Treasury bond yields.
Avalanche price could rise 20% on gaming narrative ahead of GDC conference
Avalanche is an outlier on Monday, rallying while the broader market is crashing. It has outperformed Bitcoin price, as well as meme and AI crypto coins, sectors that have been thriving of late.
Australia Interest Rate Decision Preview: RBA set to stand pat after discussing rate hikes in February
The Reserve Bank of Australia is widely expected to hold the Official Cash Rate steady at a 12-year high of 4.35% following the conclusion of its March monetary policy meeting on Tuesday. The decision will be announced at 03:30 GMT.