- AUD/USD looks to post highest daily close in a month.
- US Dollar Index stays in the negative territory during the American session.
- Reserve Bank of Australia will release February Meeting Minutes.
The AUD/USD pair edged higher during the American trading hours and touched its highest level in more than a month at 0.7788. As of writing, the pair was up 0.37% on a daily basis at 0.7782.
Thins trading conditions due to the Presidents Day holiday in the US is not allowing AUD/USD to make a decisive move in either direction. Nevertheless, the risk-on market environment, as reflected by the upbeat performances of major global equity indexes, is making it tough for the greenback to find demand on Monday.
After losing nearly 0.7% last week, the US Dollar Index failed to stage a rebound and remains on track to finish the day with small losses around 90.30.
Eyes on RBA Meeting Minutes
In the early trading hours of the Asian session, HIA New Home Sales for January will be featured in the Australian economic docket. More importantly, the Reserve Bank of Australia (RBA) will release the minutes of its February meeting, at which the bank decided to extend its QE program.
Assessing the RBA’s latest policy decisions, “given that monetary policy is a blunt tool and given Australia’s failure to produce any meaningful wage inflation for years, it is also questionable if the RBA can really achieve a ‘material’ increase in wages without structural changes in the labour market, said Rabobank analysts. “In many respects, QE will be an experimental period for the RBA.”
Technical levels to watch for
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