AUD/USD Price Analysis: Approaches 0.6700 amid quiet market mood
- AUD/USD is aiming to recapture the immediate resistance of 0.6700 amid a decline in the USD Index.
- RBA Lowe kept interest rates unchanged but warned that some further tightening is appropriate.
- AUD/USD has climbed above the 23.6% Fibonacci retracement at 0.6667.
The AUD/USD pair is looking to extend its upside journey toward the round-level resistance of 0.6700 in the European session. The Aussie asset showed a V-shape recovery from 0.6640 as investors have recovered losses inspired by a steady monetary policy announcement by the Reserve Bank of Australia (RBA).
S&P500 futures have posted moderate losses in London, portraying a quiet market mood as the weekly session has shortened due to the holiday on Tuesday on account of Independence Day. The US Dollar Index (DXY) is showing signs of volatility contraction as investors are awaiting the release of the United States Employment data for further guidance.
RBA Governor Philip Lowe kept interest rates unchanged but warned that some further tightening of monetary policy is appropriate. The decision of maintaining the status quo must have been supported by softening of Australian inflation to 5.8% due to lower gasoline prices.
AUD/USD has climbed above the 23.6% Fibonacci retracement (placed from June 16 high at 0.6900 to June 25 low at 0.6595) at 0.6667 on an hourly scale. The 50-period Exponential Moving Average (EMA) at 0.6663 is consistently providing support to the Australian Dollar bulls.
Meanwhile, the Relative Strength Index (RSI) (14) is gathering strength to jump into the bullish range of 60.00-80.00. An occurrence of the same would strengthen Aussie bulls.
A decisive break above 38.2% Fibo retracement at 0.6712 would expose the asset to June 23 high at 0.6767, followed by the round-level resistance at 0.6800.
On the flip side, a confident break June 29 low at 0.6595 would drag the asset toward June 02 low at 0.6565 and the round-level support at 0.6500.
AUD/USD hourly chart
