AUD/USD: lack of selling interest in the short-term, RBA minutes eyed - FXStreet

Valeria Bednarik, chief analyst at FXStreet, explained that the technical indicators in the 1-hour chart for AUD/USD are showing a limited selling interest, with a breakout above the 0.7570 handle required to confirm additional advances.

Key Quotes:

"The AUD/USD pair advanced up to 0.7572, surpassing last week's high by a few pips this Monday. Commodity currencies outperformed against the greenback, underpinned by the early gains in oil and stocks, although the pair retreated as Wall Street entered into negative territory ahead of the close. The RBA will release the Minutes of its latest economic policy meeting during the upcoming Asian session, which may offer some further support to the Aussie, particularly if the Central Bank doesn't hint additional rate cuts for the nearest future."

"The short term technical picture for the pair maintains the risk towards the upside, as in the 1 hour chart, the price is holding above a bullish 20 SMA, while technical indicators have turned flat right above their mid-lines after correcting overbought conditions, indicating limited selling interest. In the 4 hours chart, technical indicators retrace from near overbought readings, while the price does so from the 200 EMA, currently at 0.7570, suggesting that a break above this last is required to confirm further advances this Tuesday. In this last time frame, the 20 SMA heads strongly higher below the current level, limiting chances of a deeper slide, at least from a technical point of view."