In the past one month, the AUD/USD has gained against the dollar by more than a percentage point. Some of these gains happened today when Australia released its retail sales numbers that beat analysts’ forecasts. It also rose a day before the Reserve Bank of Australia (RBA) is expected to release its interest rate decision. On Wednesday, we will also receive the data on Q1 GDP growth. As such, traders are hoping that the RBA will give an indication of when it will raise interest rates.
The pair has reached at 0.7630, which is the highest level in the past five days. The current price is higher than the 30-day and 60-day moving average. The two are at 0.7620 and 0.7610 respectively. The RSI has fallen slightly from the overbought level of 70 and is currently at 65. The Bollinger Bands, are showing that the pair could continue moving higher.
At this point, the path of least resistance may be for the pair to go higher. However, markets may be careful about tomorrow’s statement by the RBA. A dovish statement may tank the pair while a statement that gives indications of a rate hike may take it higher.
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