AUD/USD Extends Gains Above 0.7650
The Australian dollar is among the top performers on Monday, in a quiet session for the forex market. AUD/USD rose further during the American session and peaked at 0.7664, just five pips below Friday’s highs.
The pair is testing an important short-term resistance located around 0.7660/70, area that capped the upside, on Thursday and Friday. A consolidation on top could open the doors for an extension of the recovery from 0.7547 (Apr 27 low), but upcoming monetary policy decision of the Reserve Bank of Australia could trigger volatile moves.
The RBA will announce its decision at 04:30 GMT on Tuesday. No change in rates is expected; analysts and traders will read carefully the statement particularly after the latest CPI report showed lower-than-expected numbers.
AUD/USD technical levels
To the upside, potential resistance levels might be seen at 0.7668 (Apr 29 high), 0.7690 (Apr 22 & 25 low) and 0.7765 (last week highs). On the flip side, support could be located at 0.7620 (20-hour moving average), 0.7585 (Apr 29 low) and 0.7545/50 (Apr 27 low).