- AUD / USD is looking to post the highest daily close in a month.
- The US dollar index remains in negative territory during the American session.
- Reserve Bank of Australia will publish the minutes of the February meeting.
The pair AUD/USD it rose slightly during US business hours and touched its highest level in more than a month at 0.7788. At time of writing, the pair was up 0.37% on the day at 0.7782.
The reduced trading conditions due to the Presidents’ Day holiday in the US do not allow the AUD / USD to make a decisive move in either direction. However, the market’s risk appetite, as reflected in the optimistic behavior of the main world stock indices, is making it difficult for the dollar to find demand on Monday.
After losing almost 0.7% last week, the US Dollar Index failed to rally and is still on track to end the day with small losses around 90.30.
Eyes on the RBA Meeting Minutes
In the early trading hours of the Asian session, the January EIS new home sales will be included on the Australian economic agenda. More importantly, the Reserve Bank of Australia (RBA) will release the minutes of its February meeting, in which the bank decided to extend its QE program.
In evaluating the RBA’s latest policy decisions, “given that monetary policy is a blunt tool and given Australia’s failure to produce significant wage inflation for years, it is also questionable whether the RBA can actually achieve a ‘material’ increase in wages without structural changes in the labor market, Rabobank analysts said. “In many respects, QE will be an experimental period for the RBA.”
Technical levels
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