Ahead of RBA Meeting Minutes dropping on Tuesday, the AUDUSD pair is bumping up to start the week. What level does the pair test in Tokyo trading? Find out on the 19 February AUDUSD Technical Analysis.
19 February, GKFX – AUD/USD is taking advantage of quiet market conditions with Chinese institutions shut tight for Chinese New Year’s celebrations, and the pair is up almost thirty pips to start the week and testing into 0.7935 in Tokyo trading as of writing.
Despite the recent Aussie bullish tone, the bearish pressure is still weighing heavily, highlighted by a note from BBH, “the Australian dollar’s advance brought it near the 61.8% retracement of the decline of since late January’s high near $0.8135.”
RBA Meeting Minutes drop on Tuesday
Piling onto the bearish sentiment will be the Reserve Bank of Australia (RBA) publishing their Meeting Minutes on Tuesday at 00:30 GMT, though with the RBA’s stance and outlook clearly telegraphed by RBA Governor Lowe, a little impact can be expected outside of reminding markets how hesitant Australia’s central bank is.
Bearish pressure will continue to mount on the AUD as the RBA is left with hands tied on rates while other central banks inch closer to pulling the trigger on key rate increases. The RBA is being hogtied by sluggish growth in the Australian economy and middling data releases, with analysts expecting the RBA to stand pat until well into 2019.
19 February AUDUSD Technical Analysis
Despite recent buying strength, the pair is still far from on balance, with price still trading close to the 34 EMA, and the break over the indicator seems to be running out of steam quickly, while H4 charts show the pair still trapped within consolidation points from the latter half of last week, and weakening bullish technical prospects.
Intraday action will be bound by support from 0.7895 and 0.7875, while continued buying will see resistance at 0.7965 and Friday’s high at 0.7988.
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