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AUD/USD under pressure, despite positive US opening

  • RBA meeting Minutes and Lowe speech eyed.
  • Better market mood preventing the pair from plummeting.

The American dollar advances with uneven strength against its major rivals, following a positive Wall Street's opening. Financial markets are shrugging off early risk-aversion, triggered by political jitters in Germany after a coalition government talks failed, with European indexes staying afloat and US ones extending their pre-opening gains. The positive tone in equities has helped the pair bounce from a daily low of 0.7545, while safe-havens yen and gold came under pressure.  

The AUD/USD pair topped at 0.7573 ahead of London opening, but persistent selling interest capped the advance, now stable in the 0.7550 region. Confined to a tight range, investors are now focused on the RBA's meeting Minutes, to be released during the upcoming Asian session, searching for fresh clues on macroeconomic policies.

Chances, however, that the Central Bank could change its current wait-and-see stance are minimal, considering macroeconomic figures released last week, showing subdued wages' growth. Later in the day, RBA Governor Lowe is due to speak about recent developments in the Australian and global economy at the Australian Business Economists Annual Dinner, in Sydney.

Levels to watch

The immediate support for the pair is Friday's low at 0.7535, followed by the 0.7500 figure. Beyond this last, the bearish momentum is set to accelerate toward the next static support at 0.7450. To the upside, the pair has been meeting selling interest on approaches to the 0.7600 figure, which means that some stability above the level is needed to confirm another leg higher that can extend toward 0.7665, last week high.

 

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