AUD/USD Forecast: Room to extend its advance towards 0.7300

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7241

RBA Meeting’s Minutes show that policymakers will continue to asset pandemic-developments before taking decisions.
Resurgent gold prices provided additional support to the Aussie.
AUD/USD hit a fresh year high on broad dollar’s weakness and retains its bullish stance.

The AUD/USD pair rallied to a fresh year high of 0.7264, but Wall Street’s slump dragged it lower early in the US session. As equities stabilized so did the pair, currently trading in the 0.7240 price zone. The Reserve Bank of Australia released the Minutes of its latest meeting at the beginning of the day, which was unable to trigger a market’s reaction. Also, gold continued to recover, settling above $2,000 a troy ounce and providing additional support to the Australian currency.

As expected, Australian policymakers reaffirmed that “there was no need to adjust the package of measures in Australia in the current environment,” although they agreed to “continue to assess the evolving situation in Australia and did not rule out adjusting the current package if circumstances warranted.” Instead, the pair rallied on the usual dollar’s weakness. This Wednesday, the country will publish the Westpac Leading Index for July, previously at 0.44$.

AUD/USD short-term technical outlook

The AUD/USD pair is trading a few pips below the mentioned year high, still biased higher according to intraday technical readings. The 4-hour chart shows that moving averages continue to advance below the current level, while technical indicators have stabilized near overbought readings. Overall, the risk remains skewed to the upside, with a test of the 0.7300 figure now on the table.

Support levels: 0.7190 0.7150 0.7110

Resistance levels: 0.7245 0.7280 0.7325

View Live Chart for the AUD/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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