- AUD/USD reverses intraday decline on Monday and approaches one-month highs again.
- A positive risk tone and stable yields support the pair.
- Traders might refrain from making aggressive bets ahead of this week’s key data/events.
The AUD/USD pair found buyers near the 0.6880-0.6875 region on Monday and gained momentum during the first half of the European session. The price reached up to 0.6956 in the last hour, approaching again the one-month highs reached on Friday.
The dollar on Monday is falling against a backdrop of slightly rising Treasury yields and a rally in equity markets. The latter is giving support to currencies like the Aussie. A certain stability prevails at the beginning of a week that has key events.
The week begins with the release of the Conference Board’s US Consumer Confidence Index on Tuesday. Next, quarterly inflation figures for Australia will be released on Wednesday. However, the focus will be on the outcome of the reFOMC monetary policy unionwhich will last two days. Apart from this, there will be the report on the GDP of the second quarter of the USA, which will be published on Thursday.
The Fed is scheduled to announce its interest rate decision during the US session on Wednesday and it is expected to rise by 75 basis points. However, investors will be looking for new clues about the near-term outlook for central bank policy, which could play a key role in influencing the dollar.
Technical levels
Source: Fx Street
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