AUD/USD – RBA Aftermath and Impact on Aussie Dollar

Key Highlights

• The Aussie Dollar remains above a major support area at 0.7560 against the US Dollar.
• There is an important bullish trend line forming with current support as 0.7565 on the 4-hours chart of AUD/USD.
• The minutes of the Reserve Bank of Australia meetings released today had no major negative impact on the Aussie Dollar.
• The Australian House Price Index for Q1 2017 released by the Australian Bureau of Statistics posted an increase of 2.2% (QoQ).

AUDUSD Technical Analysis

The Aussie Dollar after consolidating this past week above 0.7520 gained momentum against the US Dollar. The AUD/USD pair broke the 0.7560 resistance and now looks set for more gains.The pair recently struggled to break the 0.7630-35 resistance and started a correction. There is an important bullish trend line forming with support as 0.7565 on the 4-hours chart.Furthermore, the 50% Fib retracement level of the last wave from the 0.7519 low to 0.7633 high is also positioned at 0.7576 to provide support on dips.It seems like the pair is well supported on the downside above 0.7560. As long as the pair holds the mentioned support, it can bounce back towards 0.7630 or higher, considering the fact that the 100 SMA (H4) is pointing further gains.

RBA Meeting Minutes

Today, the minutes of the Reserve Bank of Australia meetings. A few important meeting points:

1. The improvement in global economic conditions had been evident in stronger growth in both merchandise trade and industrial production.
2. In China, growth in private fixed asset investment had been slowing for some time from very high rates.
3. Weak growth in retail sales in the March quarter had pointed to a slowing in consumption growth.
4. The labour market was an important factor in the outlook for household income growth.
5. The Board continued to judge that developments in the labour and housing markets warranted careful monitoring.

Australian House Price Index

The Australian House Price Index report for Q1 2017 was released by the Australian Bureau of Statistics today. The market expectation was an increase of 2.2%, less than the last +4.1%.The actual result was in line with the forecast, as the HPI increased by 2.2%. In terms of the yearly change, there was a rise of 10.2%, more than the last 7.7%.It looks like the Aussie Dollar may climb back above 0.7640 if buyers gain momentum to break the 0.7620-0.7630 resistance.