- AUD/USD trades in 2-day highs just below the 0.61 mark.
- Broad-based risk appetite sustains the AUD momentum.
- RBA is expected to keep rates on hold on Tuesday.
The better mood in the risk complex and the recent move from the PBoC on rates have been bolstering the renewed and strong upside bias in AUD/USD to the boundaries of the 0.6100 mark.
AUD/USD run out of steam below 0.6100
The Aussie dollar has started the week on a positive footing, leaving behind four consecutive sessions with losses and resuming the upside to the vicinity of the key barrier at 0.6100 the figure, or 2-day peaks.
AUD has regained the smile on Monday after the PBoC reduced once again the RRR, injecting extra stimulus into the system in order to help the economy to recover from the impact of the COVID-19.
In addition, the generalized upbeat mood surrounding the riskier assets is lending extra legs to AUD, which is now targeting last week’s tops above 0.6200 the figure despite the firm demand for the greenback.
Later in the week, the RBA is seen leaving the overnight cash rate (OCR) unchanged at 0.25% at Tuesday’s monetary policy meeting. Further data releases this week include Trade Balance figures (also on Tuesday), Home Loans (Wednesday) and the RBA’s Financial Stability Review (FSR) (Thursday).
AUD/USD levels to watch
At the moment the pair is gaining 1.39% at 0.6073 and a breakout of 0.6085 (high Apr.6) would aim for 0.6213 (high Mar.31) and finally 0.6458 (55-day SMA). On the downside, the initial support lines up at 0.5980 (weekly low Apr.3) seconded by 0.5506 (2020 low Mar.19) and then 0.5402 (monthly low Oct. 2002).
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