AUD/USD Forecast: Holds On To Intraday Gains, Further Gains Will Depend On The RBA

AUD/USD Current Price: 0.7651

• The Reserve Bank of Australia is expected to keep its monetary policy on hold.
• Risk appetite took over financial markets following upbeat US macroeconomic figures.
• AUD/USD holds on to intraday gains, further gains will depend on the RBA.

The AUD/USD pair broke higher and reached 0.7659, finding support in a better market’s mood that sent US stocks to record highs, a late reaction to upbeat employment figures released last week. Australian data released at the beginning of the day was encouraging, as March TD Securities Inflation was up in the month by 0.4% after advancing a modest 0.1% in the previous month.

The Reserve Bank of Australia is having a monetary policy meeting early on Tuesday, although it is widely anticipated to maintain rates at a record low of 0.1% and its commitment to yield-curve control, maintaining the target for the three-year government bond also at 0.1%. The country will publish March ANZ Job Advertisements previously up by 7.2%.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair holds on to intraday gains but has lost bullish momentum in the near-term. The 4-hour chart shows that the pair advanced further above a flat 20 SMA, but also that it remains below a mildly bearish 100 SMA. Technical indicators retreated modestly from intraday highs, holding well into positive levels. The upcoming direction will depend on how the market reads the RBA announcement, although the risk is now skewed to the upside.

Support levels: 0.7620 0.7575 0.7530

Resistance levels: 0.7665 0.7710 0.7745

View Live Chart for the AUD/USD