The Australian Dollar (AUD) plunged against the US Dollar (USD) on Tuesday, decreasing the price of AUDUSD to less than 0.7600 following the Reserve Bank of Australia’s monetary policy minutes. The technical bias shall remain bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 0.7551. A support can be noted around 0.7537, the 23.6%% fib level ahead of 0.7500, the short term horizontal support and then 0.7159, the swing low of the last major downside move on higher timeframes.

On the upside, a hurdle can be noted near 0.7602, the 61.8% fib level as well as pink trendline ahead of 0.7667, the trendline resistance on higher timeframe and then 0.7680, a major horizontal resistance.  A break and hourly closing above the 0.7680 resistance shall incite renewed buying interest, validating a move towards the 0.7800 resistance zone. The technical bias shall remain bullish as long as the 0.7450 support area is intact.

RBA Minutes

The minutes of the Monetary Policy meeting of the Reserve Bank Board on April 4 contained some significant changes from the previous minutes for the March meeting. Of most importance has been the final sentence in the section Considerations for Monetary Policy – “the Board judged that developments in the labour and housing markets warranted careful monitoring over coming months”. We previously noted that the discussion of the Governor’s statement immediately following that April board meeting on the labour market had become more down beat and the housing market commentary, more concerned, emphasising “risks associated with high and rising levels of indebtedness”.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy in short to medium term.