FxWirePro: AUD/USD extends range trade, downbeat RBA minutes and sluggish market sentiment weigh

AUD/USD chart - Trading View 

AUD/USD was trading in a tight range as traders struggle for direction for the 2nd straight session.

The major closed with a Doji on Monday's candle and was trading largely unchanged at 0.7751 at around 03:30 GMT.

Mostly downbeat RBA minutes and sluggish market sentiment exerts additional downside pressure.

RBA March meeting minutes suggest that the authorities are concerned over the economy’s employment and are determined to keep the easy money policy.

However, the minutes also ruled out negative rates while also suggesting no rate hike unless inflation and employment targets are met. 

Aussie bulls ignored upbeat Australia’s House Price Index (Q4) which crossed the 2.0% market consensus on QoQ basis to print at 3.0%. YoY data stood at 3.6%, lagging behind the previous 4.5%.

Technical bias for the pair is neutral. Price action is capped between 20-DMA on the upside and 55-EMA on the downside.

Breakout of range will provide clear direction. Major trend is still bullish, however, breach below 55-EMA will change near-term dynamics.

Major Support and Resistance Levels
 

Summary: AUD/USD lacks clear directional bias. US Retail Sales for February due 12:30 GMT later today along with FOMC policy meet (Wed) will be watched for impetus. Retail Sales are forecast to fall 0.5% in February from 5.3%. FOMC members are likely to cheer US covid relief package and may upwardly revise their dot-plot forecasts.