AUD/USD struggles to pull away from multi-month lows, trades near 0.6870
- US Dollar Index stays calm near mid-97s on Monday.
- Coming up: House Price Index from Australia and RBA meeting minutes.
After dropping to its lowest level since January and erasing more than 100 pips for the week, the AUD/USD pair started the new week in a calm manner and is now struggling to stage a recovery. As of writing, the pair was trading at 0.6867, losing 0.07% on a daily basis.
Boosted by the upbeat macroeconomic data releases from the U.S. on Friday, the US Dollar Index, which gauges the greenback's value against a basket of six major currencies, rose above the 97.50 mark and is now moving sideways near that level, waiting for the next significant catalyst. Later in the day, the NAHB Housing Market Index will be released from the U.S. but is unlikely to trigger a sharp reaction.
In the early trading hours of the Asian session, the Reserve Bank of Australia (RBA) will be publishing the minutes of its June meeting, at which the bank decided to cut its policy rate by 25 basis points. The dovish headlines from RBA officials last week hinted at the possibility of the RBA going for another rate cut in the near-term.
According to Westpac analysts, markets are pricing a 75% probability of a July rate cut and the AUD could come under a renewed selling pressure if the RBA's publication on Tuesday confirms that.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
