AUD/USD Trades at Its Highest Since Mid-July and Is Poised to Extend Gains

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AUD/USD Current Price: 0.7475

• RBA Meeting Minutes failed to impress, reiterating September's message.
• Risk flows sent Wall Street higher, which in turn supported the aussie.
• AUD/USD trades at its highest since mid-July and is poised to extend gains.

The Australian dollar was among the best performers on Tuesday, reaching 0.7485 against the greenback, its highest since mid-July. Risk flows underpinned the pair in the absence of a fresh catalyst. The Reserve Bank of Australia published the Minutes of its latest meeting, which was a no-event, as it was a copy of the September statement. Australian policymakers reiterated their optimism that the economic activity is expected to return to pre-pandemic levels in the second half of 2022, adding they don't expect to reach the inflation target until 2024.

The pair rallied as global indexes closed in the green, with Wall Street flirting with record highs. Australia will publish early on Wednesday the September Westpac Leading Index, previously at -0.27%.

AUD/USD short-term technical outlook

The AUD/USD pair holds on to intraday gains, trading a handful of pips below its daily high. The pair is bullish, according to the daily chart, as it accelerated its advance beyond the 100 SMA, while the 20 SMA heads north well below the current level. Technical indicators maintain their firmly bullish slopes near overbought readings, in line with further gains ahead.

In the near term, and according to the 4-hour chart, the pair is overbought, although without signs of bullish exhaustion. Technical indicators stand at extreme levels, with the RSI consolidating and the Momentum still advancing. At the same time, the pair develops above all of its moving averages, with the 20 SMA accelerating north above the longer ones.

Support levels: 0.7440 0.7400 0.7365  

Resistance levels: 0.7510 0.7550 0.7590

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.