The AUD/USD pair trades at its highest in 2 weeks, boosted by a less than expected dovish RBA statement yesterday, and a continued recovery in commodity prices. The near term technical bias remains bullish because of a Higher High and Higher Low in the recent wave on a four-timeframe.

Technical Analysis

The pair holds near its highs early Asia and the 1-hour chart shows that the Momentum indicator has resumed its advance well above its 100 level after correcting overbought readings, whilst the RSI indicator holds around 70, and the 20 SMA heads sharply higher around 0.7120.

In the 4 hours chart, the technical indicators have lost upward their strength near overbought levels, but the price has broken above its 200 EMA for the first time since mid-September, supporting additional gains in the mid-term, as long as the level holds.

Meanwhile, the Central Bank Governor, Glenn Stevens, showed little concern over the economic slowdown in the region, and even cited improvement in the labor market after leaving rates unchanged at 2.0%.

Australia Average Weekly Wages

Wages In Manufacturing in Australia decreased to 1259 AUD/Week in the second quarter of 2015 from 1268.50 AUD/Week in the fourth quarter of 2014, a government report said. Wages In Manufacturing in Australia averaged 732.20 AUD/Week from 1983 until 2015, reaching an all-time high of 1268.50 AUD/Week in the fourth quarter of 2014 and a record low of 333 AUD/Week in the fourth quarter of 1983.

Trade Idea

Considering the overall technical and fundamental outlook, waiting for a bearish reversal candle at this stage could be a good strategy in the short to medium term.

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