AUD/USD has grown over the past 2 months by 3.1%, rising to current levels near the resistance level of 0.7510.
Today AUD/USD is also growing, while the Australian dollar received additional support from positive macro data published last Thursday and Friday.
Economists say the fiscal year 2022-2023 budget released last week will support the economy with stimulus spending and employment growth will continue.
Tomorrow there will be a regular meeting of the RBA dedicated to the issues of monetary policy. It is expected that at this meeting, the Central Bank of Australia will leave the interest rate at the current level of 0.1%, although unexpected decisions are not ruled out, given the improvement in the country's labor market and the accelerating rise in prices for raw materials (Australia's main export commodity), spurring inflation. In an accompanying statement, RBA officials will explain the reasons behind the rate decision. If the RBA signals the possibility of tightening monetary policy in the near future, then the Australian dollar will receive an additional incentive for further strengthening, and a breakdown of the local resistance level of 0.7540 will push the AUD/USD pair to further growth with the current target of 0.7610. A breakdown of this resistance level and further growth can finally bring AUD/USD into the zone of a long-term bull market.
In an alternative scenario, the first signal for a decline will be a breakdown of the short-term support level of 0.7479. Nevertheless, the decline down to the support level of 0.7320 will be considered corrective. In the current situation, long positions remain preferable.
Support levels: 0.7510, 0.7479, 0.7400, 0.7363, 0.7320, 0.7175, 0.7085, 0.7037, 0.7000, 0.6970
Resistance levels: 0.7540, 0.7555, 0.7610, 0.7730, 0.7775, 0.7815, 0.7900, 0.8000
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Source: InstaForex
