- AUD/USD jumps over 15 pips on RBA meeting minutes.
- RBA minutes keep rate hike away until 2024, cites readiness to alter bond buying, if needed, but not yield target.
- Market mood remains upbeat in Asia amid chatters over US mask mandate, vaccine patent waiver.
- Fed’s Kaplan flashed mixed signals but reiterates the need to talk tapering.
AUD/USD stays well bid after an 18-pips jump to refresh intraday high with 0.7794, up 0.34% on a day near 0.7791 by the press time, during early Tuesday.
The pair recently benefited from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes. Although the minute statement reiterated the RBA’s rejection to rate hikes before 2024, the Aussie central bank’s turning down on any yield curve alteration, even if needed, backed the AUD/USD bulls of late.
Read: RBA Minutes: Aiming for wages to grow “sustainably” above 3%
Other than the RBA minutes, the market’s upbeat mood also favored the AUD/USD upside. Trading sentiment improved after the US showed readiness to share more of its vaccines with the needy nations. “President Joe Biden will send at least 20 million more COVID-19 vaccine doses abroad by the end of June, marking the first time the United States is sharing vaccines authorized for domestic use,” said Reuters. Also on the same line could be China’s support to the global push for covid vaccine patent waiver.
Additionally backing the risk-on mood, also the AUD/USD prices, could be New York’s end to mask mandate for vaccinated people.
It should, however, be noted that the inflation jitters and uncertainty over the Fed’s next move, coupled with the RBA’s indecision, keep market sentiment pressured and tame the AUD/USD bulls time-to-time.
Amid these plays, S&P 500 Futures rise 0.25% and Australia’s ASX 200 is up 0.50% by the press time. Further, the US dollar index (DXY) remains depressed and the 10-year Treasury yield gains 1.5 basis points (bps) to 1.65% while writing.
Given the latest risk-on mood offering tailwind to the AUD/USD upside, the pair needs clarity over relfation and the Fed’s next moves for fresh impulse. Hence, Wednesday’s Federal Open Market Committee (FOMC) minutes will be the key to follow.
Technical analysis
Multiple tops marked during mid-April highlight 0.7760 as immediate support. However, AUD/USD remains sideways unless crossing the 0.7820-0.7710 region. Wherein the multiple tops marked since January defines the range resistance while a confluence of 50-day and 100-day SMA portrays the 0.7720-10 support area.
