AUD/USD awaits RBA minutes at nine-month highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD is consolidated in the vicinity of fresh 2016 highs that were achieved overnight in the rebound of the Doha sell-off in early Asia yesterday.

    AUD/USD reached 0.7754, setting a new high score for 2016 and a nine month record after a rally that commenced from 0.7663 in European trade, targeting the gap at 0.7720 and then traders in the U.S. added to the longs through 0.7720 stops.

    For today, we await the RBA minutes as the key headline to monitor with a focus likely to be on the labor market and inflation and a potential opportunity to voice concerns over the strength of the Australian dollar which could add some downside pressures, especially if the minutes are more dovish than Stevens recent neutral to dovish tone. Otherwise, we will have to wait until tomorrow's speech from Stevens which will be another chance for jawboning the currency lower in the current environment.

    AUD/USD levels

    AUD/USD remains above the 20 dma at 0.7614 and pivot that is located higher at 0.7713. The resistance here at the mid point of the handle is holding up the bulls advance while price was otherwise targeting 0.7801 R3. On a retest of the downside below the pivot, S3 is located at 0.7636 with the intraday low at 0.7630 with the aforementioned 20 dma as a key support.
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