Australian Dollar remains resilient near two-month high ahead of Fed Minutes
AUD/USD edges higher on Tuesday and trades around 0.7115 at the time of writing, up 0.1% on the day.
The Australian Dollar held steady near a two-month high as investors awaited Federal Reserve minutes, with the AUD/USD pair trading around 0.7115 on Tuesday. The currency pair was just above Monday's peak of 0.7129, its highest level in over two months, but struggled to surpass this milestone. The US Dollar struggled to rebound, finding support due to rising oil prices that raised concerns about a potential increase in inflationary pressures in the United States.
Heightened geopolitical tensions between the US and Iran also contributed to the renewed demand for the US Dollar. Investors remained cautious as the release of the Federal Open Market Committee (FOMC) Minutes on Wednesday could provide insights into Fed officials' assessment of inflation risks and future US interest rate trajectory.
The Reserve Bank of Australia (RBA) demonstrated a hawkish stance, pushing back against a dovish interpretation of the latest monetary policy decision. The Australian Dollar benefited from this, with investors monitoring July's employment data for clues about the strength of the labor market and its impact on expectations for the RBA's future policy decisions.
Technical analysis showed that AUD/USD traded at 0.7113, maintaining a mildly bullish bias and trading above key moving averages and a horizontal support level. On the upside, resistance could be found at the 0.7129 level, while support was located at 0.7095, along with the 100-period and 200-period SMAs at 0.7083 and 0.7068, respectively.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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