The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Monday, increasing the price of AUDUSD to more than 0.7700 ahead of the Reserve Bank of Australia (RBA) monetary policy meeting minutes. The technical bias shall remain bullish because of a higher high in the ongoing upside rally.
As of this writing, the pair is being traded around 0.7725. A hurdle can be noted near 0.7731, an immediate trendline resistance ahead of 0.7770, another trendline resistance zone as demonstrated with red color in the given below daily chart. A break and daily closing above the trendline resistance shall incite renewed buying interest, validating a move towards the 0.8000 resistance zone.
On the downside, a support can be noted around 0.7662, a short term horizontal support ahead of 0.7450-0.7475, the confluence of 50% fib level as well as another trendline support area and then 0.7159, the swing low of the last major downside move. The technical bias shall remain bullish as long as the 0.7490 support area is intact.
Reserve Bank of Australia
The Reserve Bank of Australia (RBA) is schedule to release its monetary policy meeting minutes today during the late US trading session. The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD and vice versa.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
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