- Broad-based USD selling is helping Aussie dollar extend the three-day winning streak.
- RBA minutes offered no new information on the economy and monetary policy, leaving the pair at the mercy of broader market sentiment.
The AUD/USD rose to 0.7354 in Asia – the highest level since Aug. 10 – having gained close to 100 pips in the last three trading days.
The corrective rally gathered steam on Friday as the yellow metal (one of Australia’s top exports) recovered sharply from the multi-month low of $1,160. Further, the USD has been taking beating since yesterday likely due to fears that Trump’s criticism of the Fed may force the central bank to slow down the pace of policy tightening.
As a result, AUD/USD is better bid in Asia. The minutes of the Reserve Bank of Australia (RBA) August monetary policy meeting reiterated that there is no strong case for rate hike in the near-term, but the next move will likely be up if the economy continues to evolve as expected.
Essentially, them minutes offered no hawkish or dovish surprise, leaving the pair at the mercy of the broader market sentiment. At press time, the AUD/USD is trading at 0.7348 – up 0.20 percent on the day. The currency pair could extend gains if the treasury yields extend the overnight decline.
AUD/USD Technical Levels
Support: 0.7333 (session low), 0.7310 (July 2 low), 0.73 (5-day MA)
Resistance: 0,7387 (50-day MA), 0.74 (psychological level), 0.7453 (Aug.9 high)
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