AUD/USD on the defensive near 0.7310, RBA on sight
- The Aussie Dollar started the week on a soft fashion.
- RBA minutes, Governor Lowe speech the salient events this week.
- The pair retreats from last week’s fresh 3-month peaks.
The Aussie dollar has started the week on a weak note and is now dragging AUD/USD to the boundaries of the 0.7300 handle, or daily lows.
AUD/USD now looks to RBA
After four consecutive daily advances, the pair is now posting moderate losses despite the offered bias surrounding the greenback on Monday.
Spot saw its upside resumed in past sessions and managed to clinch fresh 3-month tops beyond 0.7300 the figure always on the back of persistent USD-weakness and recently published stellar figures from the Australian labour market, which collaborated with the rally.
In light of the recent breakout of the 0.7300 handle, FX Strategists at UOB Group noted: “While we still prefer upward momentum to be more ‘impulsive’, the break of 0.7315 has shifted the focus to the next major resistance at 0.7380 (with a relatively strong ‘intervening’ resistance at 0.7355)”.
Looking ahead, market participants will closely follow the RBA minutes and the speech by Governor P.Lowe (both due tomorrow).
AUD/USD levels to watch
At the moment the pair is losing 0.34% at 0.7307 and a breakdown of 0.7256 (10-day SMA) would open the door to 0.7181 (21-day sma) and finally 0.7163 (low Nov.13). On the other hand, the next resistance aligns at 0.7339 (high Nov.16) seconded by 0.7383 (high Aug.21) and then 0.7449 (200-day SMA).