FX analysis – AUDUSD at key resistance ahead of RBA minutes and wage data

With the US closed for a holiday FX markets on Monday struggled to find much direction though China re-opening in the green after an extended leave did lend some support to the Aussie dollar ahead of todays RBA minutes. The February 6th RBA meeting saw a statement that had a bit of both ways, acknowledging broad progress on the inflation front but also pointing to the concerning level of inflation despite recent progress. This was seen as a hawkish leaning hold, seeing AUDUSD rally modestly on the day, today’s minutes will fill in the gaps as to the discussion between RBA members leading to the official decision.

AUDUSD Technical analysis

AUDUSD has bounced in the last week after setting new 2024 lows at 0.6442 on the 13^th of February. The steady advance retaking the 0.65 handle and breaching the February resistance level of 0.6525, which has so far held as support. AUDUSD has hit some technical resistance levels here, firstly the 100 Day SMA, which has so far capped further price increase, and further to the upside is the 200 Day SMA and 50% Fib level at around 0.6580 which could also provide technical resistance to any further Aussie upside.

Technical support to the downside could be found firstly at the 61.8 fib level at 0.6513, failing that the 2024 lows at 0.6450.

For Aussie traders, along with the RBA minutes today, the main data point will be Wednesdays Wage Price Index, a gauge the RBA has referenced in regards to their rate decisions and could be a big Aussie mover if outside of expected range.