Aussie Dollar (AUD/USD, AUD/NZD) Analysis

• AUD in focus ahead of the RBA minutes as risk assets march on
• RBNZ highly unlikely to move on rates as inflation remains above target
• Main risk events: RBA minutes, RBNZ rate decision, Fed speakers
• The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library

Aussie Dollar in Focus Ahead of RBA Minutes as Risk Assets March on

The Aussie dollar holds around the pre- pandemic low of 0.6680 as the impressive bullish continuation unfolds. The bullish pennant, which developed from early to mid-May, revealed a strong bullish continuation which was largely influenced by the move lower in US inflation.

Price action holds at elevated levels after intra-day pullbacks were repelled before testing the 0.6644 level that previously capped higher prices. In a week where that sees a notable drop-off in the number of ‘high importance’ data, volatility may wane and the US dollar may stand to benefit from a gradual recovery. Conditions of lower volatility tend to see a move towards higher yielding currencies, something that could see the US and Kiwi dollars find some respite.

Holding above 0.6680 keeps the door open to a bullish advance while a break below 0.6644 places the recent bullish momentum into question.

AUD/USD Daily Chart