Aussie Dollar Consolidates Ahead of Central Bank Meeting Minutes

FXOpen

The Australian Dollar (AUD) plunged against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.7600 ahead of the Reserve Bank of Australia’s monetary policy minutes. The technical bias shall remain bullish because of a higher high in the ongoing upside rally.

Technical Analysis

As of this writing, the pair is being traded around 0.7587. A hurdle can be noted near 0.7602, the 61.8% fib level as well as pink trendline ahead of 0.7667, the trendline resistance on the higher timeframe and then 0.7680, a major horizontal resistance.  A break and hourly closing above the 0.7680 resistance shall incite renewed buying interest, validating a move towards the 0.7800 resistance zone.

Aussie Dollar Consolidates Ahead of Central Bank Meeting Minutes

On the downside, a support can be noted around 0.7577, the 50% fib level ahead of 0.7500, the short-term horizontal support and then 0.7159, the swing low of the last major downside move on higher timeframes. The technical bias shall remain bullish as long as the 0.7450 support area is intact.

How AUDUSD Reacted on Past RBA Minutes?

Last time the RBA released its minutes on 21st March, 2017. The AUD/USD pair fell broadly after the release of February minutes as the central bank indicated lower interest rate for a longer period of time.

The pair, however, rose by more than 50 pips after the release of January 2016 RBA minutes as the central bank signaled no rate cut in near future.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

What Assets to Trade

In addition to AUD/USD, trading EURAUD, AUDJPY, GBPAUD and AUDCHF can be a good strategy as the aforementioned pairs are highly reactive to the RBA monetary policy announcement.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

Coca-Cola Company (KO) Shares Trade Near All-Time High

Stock market charts indicate that from the start of last week’s trading through to its close:

→ The S&P 500 Index (US SPX 500 mini on FXOpen) declined by approximately 3%;
→ Pepsico (PEP) shares dropped by more than

Cryptocurrencies

BTC/USD Analysis: Bulls on the Offensive

In our previous analysis of Bitcoin’s price (14 April), we:

→ constructed a long-term ascending channel (marked with blue lines);

→ highlighted resistance level R, suggesting that the bulls were seizing the initiative in an attempt to pave the way for

Commodities

Market Analysis: Gold Extends Record Run, WTI Crude Oil Rebound in Tandem

Gold price started a fresh surge above the $3,250 resistance level. WTI Crude oil prices climbed higher above $60.00 and might extend gains.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

· Gold price started a

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.