AUD/USD stays below 0.6800 ahead of RBA minutes
- AUD/USD clings to sub-0.6800 as traders await fresh directions from RBA minutes.
- Recovery in the market’s risk-tone confronts overall greenback strength.
- Trade jitter continues despite the US efforts.
With the improvement in global risk sentiment and the US Dollar (USD) rise confusing the Aussie traders, the AUD/USD pair seesaws near 0.6765 during early Tuesday morning in Asia.
On Monday, investors welcomed China’s step towards free-floating currency and Germany’s readiness to announce fiscal measures while the news that the US delaying restrictions on China’s Huawei offered additional upside momentum to the risk-tone.
As a result, equities recovered some of the previous losses while bond yields also rose with the US 10-year treasury yield marking nearly 7 basis points (bps) of increase.
Investors will now keep an eye over the Reserve Bank of Australia’s (RBA) monetary policy meeting minutes for the August 06 decision, up for publishing at 01:30 GMT. Although the central bank didn’t alter its monetary policy at the meeting, clues for further rate cuts and/or dovish economic outlook can further please Aussie sellers.
Additionally, trade/political news will continue entertaining market players post-minutes as no major data/events appear on the economic calendar then after.
Technical Analysis
0.6750/45 and 0.6735 will be on the sellers’ radar unless the quote rallies beyond 0.6822, which in turn opens the door for a fresh leg up to June low surrounding 0.6831 and then to May bottom near 0.6860.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
