The RBA will release its meeting minutes and Governor Bullock is scheduled to speak.
The Australian dollar continues to benefit from risk appetite.
The AUD/USD reaches its highest daily close in three months.
The AUD/USD rallied for the second day in a row, reaching its highest daily close in three months after breaking well above the 0.6520 level. The bias remains to the upside, supported by a weaker US Dollar and risk appetite. Technical factors are also adding to the bullish momentum.
On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its latest meeting, which are not expected to contain any major surprises. RBA Governor Michele Bullock will take part in a panel discussion on the state of the economy in Melbourne. Investors will be watching her words closely, especially after the central bank raised interest rates in early November.
The USD continues to fall as market participants believe that the Federal Reserve is done raising interest rates. U.S. yields have edged lower and Wall Street indices have hit new monthly highs, adding to the pressure on the greenback. The backdrop shows potential for further downside in the value of the U.S. dollar. On Tuesday, the Federal Reserve will release the minutes of its latest meeting.
The AUD/USD’s Short Term Technical Outlook
The AUD/USD breached the 0.6520 resistance level and climbed as high as 0.6565 before losing some momentum. The pair is currently consolidating near the top, indicating that the positive momentum is still intact. The next critical resistance level to watch is at 0.6600, which is a horizontal area and the 200-day simple moving average (SMA).
The 4 hour chart is showing some consolidation as the Relative Strength Index (RSI) stabilizes around 70 and the Momentum is turning slightly lower. However, the Moving Average Convergence Divergence (MACD) is giving bullish signals. As of the Asian session, the bias remains bullish and further gains are likely as long as the price stays above 0.6505.