The AUDUSD pair maintains bullish bias and looks for retest of last week’s recovery high at 0.7229, after bulls regained traction and rallied from Asian session low at 0.7144.
The Aussie reacted on the latest decision of the US to impose new tariffs on Chinese goods, with controlled downside action on China’s subsequent comments about response to the US decision.
Better than expected Australian Q2 housing data were also supportive, while the RBA released the minutes of the latest policy meeting.
The central bank’s decision to keep accommodative policy for some time was in line with expectations, as it expects further fall in unemployment and inflation to pick up, to give firmer signals for fresh tightening.
Daily techs are bullishly aligned and supportive, however, bulls need break above falling 20SMA (0.7219) and previous high (0.7229) to spark extension of bull-leg from 0.7085 towards 0.7250 (falling 30SMA) and 0.7268 (Fibo 61.8% of 0.7381/0.7085 descend).
Initial support lays at 0.7180 (rising 5SMA), with extended downticks expected to find footstep above north-turning 10SMA (0.7163) which guards pivotal supports at 0.7144/41 (lows of Monday / today).
Res: 0.7219, 0.7229, 0.7250, 0.7268
Sup: 0.7180, 0.7141, 0.7085, 0.7000
