For the fourth straight session, the Australian Dollar (AUD) strengthened due to hawkish sentiment surrounding the Reserve Bank of Australia (RBA). This optimism supports the Aussie Dollar's gain and sustains the AUD/USD pair.
In its forthcoming meeting on Tuesday, the Australian central bank is expected to maintain the cash rate at a 12-year high of 4.35%. But expectations are that it might bring back a modest tightening tendency, especially in light of the unexpectedly high inflation statistics from last week, as noted by The Australian Financial Review.
Because of Friday's less-than-expected US jobs report, the US Dollar Index (DXY), which measures the performance of the US Dollar (USD) versus six major currencies, is still under pressure. The US Federal Reserve (Fed) may lower interest rates later this year, as this development has restored expectations. Following Fed Chair Jerome Powell's somewhat dovish position on the monetary policy outlook during Wednesday's session, the widespread risk appetite may persist this week.
Technical Analysis: The Aussie dollar maintains its position above the psychological threshold of 0.6600
On Monday, the Australian dollar is trading at about 0.6620. The pair is still arranged in a symmetrical triangle, and there is a bullish bias since the 14-day Relative Strength Index (RSI) is above the 50-level.
The upper boundary may be retested by the AUD/USD pair near the 0.6649 mark. A breakthrough over this barrier would encourage the two to investigate the area surrounding the 0.6667 high from March.
The nine-day Exponential Moving Average (EMA) at 0.6552 and the psychological level of 0.6600 could provide the AUD/USD pair with immediate support on the downside. A break below the latter may put pressure on the pair to test the lower limit of the symmetrical triangle around the 0.6465 level, and then the previous support at the 0.6480 level.
AUD/USD: Daily Chart
Australian Dollar price today
The Australian Dollar's (AUD) percentage move against the main currencies listed today is displayed in the table below. The strongest currency relative to the New Zealand dollar was the Australian dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.08% | -0.05% | -0.06% | -0.09% | 0.02% | 0.05% | -0.02% | |
| EUR | 0.07% | 0.01% | 0.01% | -0.02% | 0.08% | 0.13% | 0.04% | |
| GBP | 0.03% | -0.01% | 0.00% | -0.04% | 0.07% | 0.09% | 0.03% | |
| CAD | 0.15% | 0.05% | 0.09% | 0.28% | -0.15% | 0.08% | 0.04% | |
| AUD | 0.10% | 0.02% | 0.03% | 0.03% | 0.11% | 0.14% | 0.06% | |
| JPY | -0.04% | -0.08% | -0.04% | -0.09% | -0.10% | 0.06% | -0.06% | |
| NZD | -0.05% | -0.11% | -0.09% | -0.10% | -0.16% | -0.02% | -0.06% | |
| CHF | 0.03% | -0.04% | -0.03% | -0.03% | -0.07% | 0.06% | 0.07% |
Paraphrasing text from "FX Street" all rights reserved by the original author
