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Forex: AUD/USD quiet around 1.0240 ahead of RBA


Rey Nuevo

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FXstreet.com (San Francisco) - The Australian dollar gained on the greenback Monday following weak U.S. retail data, which sparked another round of speculation about more easing from the Fed.

 

Later today, at 14:00 GMT, market participants will be listening closely to testimony by the head of the Federal Reserve. In the more immediate future however, focus remains on the latest RBA minutes, scheduled for release at 01:30 GMT.

 

So far this Tuesday in Asia, the pair has traded a very limited range around the 1.0240 mark ahead the RBA minutes. Farther to the downside, support levels lie at 1.0175 and 1.0140, while further resistance comes in at 1.0280 and 1.0330.

 

The 4-hour chart illustrates a bullish technical outlook, “with momentum heading strongly north above its midline,” comments Valeria Bednarik, Chief Analyst at FXstreet.com. “The AUD strength will be tested later today by RBA Minutes, where a dovish stance, or suggestions more rate cuts may be needed, will likely jeopardize current bullish trend.”

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