AUD/USD struggles near 0.7170 ahead of RBA minutes

  • Aussie traders remain cautious ahead of the RBA minutes.
  • A recent change in the central bank's policy bias highlights the importance of details signaling future rate-cuts.

The AUD/USD pair trades near 0.7170 during the early Asian session on Tuesday. The pair moved little on Monday due to lack of fresh directives. Though, the monotony is likely to breached soon as investors have started being cautious ahead of the RBA meeting minutes that are up for release in the next few hours.

While upbeat data from its largest customer, China, helped the Aussie to remain positive on Monday, mixed comments from the US lawmakers during the US session trimmed some of the previous gains.

It should also be noted that the Aussie is considered to be a risk barometer and sluggish results from the US giants like Goldman Sachs and Citigroup did affect the market risk profiles.
10-year US treasury yields form the US remained little changed to 2.56% at the press time.

Minutes of the Reserve Bank of Australia’s (RBA) April month board meeting will be closely watched considering the central bank's shift in monetary policy bias and an addition into the rate statement that signals the easing on the cards during the future policy meetings. Additionally, weak activity reports and business survey results confront strong employment details and the same could be spotted in the minute statement.

From the US, March month industrial production will be up for release and is likely to grow 0.2% versus the earlier revised figure of 0.0%.

The trade negotiations between the US and China have so far refrained from offering any big negative headlines. The US is easing some of the demands on industrial subsidies from China in order to avail more agricultural demand. Though, talks over currency manipulation are still in pipeline and have the ability to moves the sentiment either way.

AUD/USD Technical Analysis

In addition to a downward sloping trend-line ranging from June 2018, at 0.7185, 200-day simple moving average (SMA) near 0.7195 – 0.7200, could also limit the pair’s immediate upside. It should also be noted that the break of 0.7200 might not refrain from fueling the quote towards 0.7235/40 resistance-area.

Meanwhile 100-day SMA level of 0.7140 and 50-day SMA level of 0.7105 can offer nearby supports to the pair ahead of an ascending trend-line stretched since early-March near 0.7080.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends falls after US retail sales beat expectations

EUR/USD extends its falls after US retail sales beat expectations with 1.6% and despite downward revisions. It trades in the low 1.1200s. Earlier, Germany's Manufacturing PMI dropped sent it lower.


GBP/USD struggles around 1.3000 after US retail sales

GBP/USD trades around 1.3000 after US retail sales beat expectations with significant rises. It dipped below the line earlier. UK retail sales also exceeded early projections, but the damp market mood kept it pressured. 


USD/JPY keeps the red below 112.00 mark, despite goodish USD uptick/stable equities

The USD/JPY pair trimmed a part of its early slide and recovered around 20-pips from weekly lows, albeit struggled to make its way back above the 112.00 round figure mark.


XRP make a move and puts the market in take-off mode

The market is a few cents away from going into full bullish mode. The bullish process follows the expected pattern, first XRP, then ETH. BTC must accept the team player role and back up the market.

Read more

Gold: Bounce from YTD lows/50% Fibo. support might turn out to be short-lived

The precious metal stalled its recent decline and managed to stage a modest recovery from support marked by 50% Fibo. level of the $1196.40-$1346.85 strong up-move.

Gold News