FxWirePro: AUD/USD extends range trade, Aussie under pressure after RBA minutes reiterate policymakers’ cautious optimism

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading largely unchanged at around 0.7712 at around 06:30 GMT.

Previous Session's High/ Low: 0.7725/ 0.7693

Previous Week's High/ Low: 0.7775/ 0.7688

Fundamental Overview:

The Reserve Bank of Australia (RBA) minutes released earlier today reiterate policymakers’ cautious mood. 

The RBA board agreed it would be ‘premature to consider ceasing’ the bond-buying program,” during the latest release. 

In addition to the RBA board’s rejection of rate-hike and tapering concerns, downbeat market sentiment also weigh on the Aussie.

Technical Analysis:

- AUD/USD trades with a neutral bias

- Price action is extending sideways along daily cloud

- The pair remains capped between 55 and 110 EMAs

- Major and minor trend on the GMMA indicator has gone flat on the daily charts

- Oscillators are neutral to slightly bearish, ADX supports weakness

Major Support and Resistance Levels:

Support - 0.7670 (Trendline), 0.7619 (38.2% Fib), 0.7544 (200-DMA)

Resistance - 0.7718 (5-DMA), 0.7735 (50-DMA), 0.7767 (23.6% Fib)

Summary: Markets remains cautious ahead of FOMC monetary policy meeting. Risk-off dents antipodeans. Robust economic data raises scope for FOMC to resort to monetary policy normalization sooner than expected. Technical bias remains bearish. A hawkish tone from policymakers will buoys USD bulls. 

Scope for test of trendline support at 0.7670, breach below will drag the pair lower. On the flipside, breakout above cloud will negate any bearish bias.