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  • AUD/USD struggles to hold above 0.7300 on Monday.
  • US Dollar Index recovered above 93.00 in American session.
  • RBA will release September Meeting Minutes on Tuesday.

The AUD/USD pair rose to a fresh daily high of 0.7304 during the American session but lost its traction and erased a portion of its gains. As of writing, the pair was up 0.1% on a daily basis at 0.7290.

The upbeat market mood at the start of the week made it difficult for the greenback to find demand and helped AUD/USD push higher. The US Dollar Index (DXY), which closed the previous week in the positive territory, dropped below 93.00 on Monday after Wall Street’s main indexes started the day sharply higher.

However, in the absence of significant fundamental drivers, the DXY staged a technical rebound in the late American session and was last down 0.2% on the day at 93.08.

Focus shifts to RBA Meeting Minutes

In the early Asian session on Tuesday, the Reserve Bank of Australia (RBA) will release its September Meeting Minutes. 

In a report published last week, Bloomberg said that a survey of 11 economists showed that the RBA is expected to boost its bond-buying program or lower its policy rate to help the economy recover from its first recession in almost 30 years. However, a majority of participants see the RBA making its next move at the end of the year or in early 2021. If the minutes point out to a possible dovish shift, the AUD could come under renewed selling pressure and cause AUD/USD to push lower.

House Price Index for the second quarter will be featured in the Australian economic docket as well.

Technical levels to watch for