AUD/USD: No response to RBA minutes, inside day candle makes today’s close pivotal

• The Aussie dollar is seeing little action as the RBA minutes offered little hawkish or dovish surprise.
• The pair created an inside day candle yesterday, neutralizing the immediate bullish view put forward by Friday’s inverse head-and-shoulders breakout.
• A close above 0.7326 would signal a continuation of the rally.

The AUD/USD has barely moved in the last few minutes, even though the minutes of the Reserve Bank of Australia (RBA) said the next move in interest rates is likely to be on the higher side.

The minutes, however, reiterated that policymakers do not see a strong case for a near-term move as wage growth remains anemic and high household debt and rising protectionism are risks to the Australian economy.

Simply put, the minutes offered little  that markets did now know, leaving the Aussie dollar at the mercy of the broader market sentiment, which is currently not in favor of the risk assets. The Aussie, however, could resume its upward journey if today’s close is above 0.7325 (high of yesterday’s inside day candle).

That move would also put the focus back on the inverse head-and-shoulders breakout witnessed on Friday and could yield a rally to 0.7444 (200-day SMA).

AUD/USD Technical Levels