UDUSD defends 100-DMA breakout with eyes on RBA
AUDUSD holds onto Friday’s recovery moves from a three-week-old support line around the 100-DMA as Aussie traders brace for the RBA monetary policy meeting. Although Australia’s central bank has been dovish of late, any hints of a tighter monetary policy for the future may allow the AUDUSD prices to extend the latest run-up beyond the 100-DMA level of 0.7240. Even so, a downward sloping trend line from January 12 near 0.7280 and February’s high surrounding 0.7285 will act as extra hurdles to the north. Should the quote remain firmer above 0.7285, bulls will be confident in crossing the January month’s high near 0.7315.
Alternatively, RBA’s downbeat comments and fears of softer wage growth could weigh on AUDUSD prices, which in turn highlight the short-term support line, around 0.7140 by the press time. It should be noted, however, that a clear downside break of 0.7140 will make the quote vulnerable to drop towards February’s bottom close to 0.7050. In a case where AUDUSD bears keep reins past 0.7050, the year 2021 low near 0.6990 and the bottom marked in January around 0.6965 will be in focus.
Overall, the AUDUSD rebound approaches the key hurdles ahead of impending downbeat catalysts.
