- AUD / USD rebounds after falling to the 0.7730 area earlier in the day.
- The US dollar index loses traction in the American session.
- The risk averse market environment limits the rise of the AUD / USD ahead of the RBA meeting minutes.
The pair AUD/USD It fell to a daily low of 0.7731 during European trading hours, but managed to rebound in the second half of the day. At time of writing, the pair was virtually unchanged on a daily basis at 0.7770.
Earlier in the day, the risk averse market environment helped the dollar to remain resilient against its rivals and did not allow the AUD / USD to gain traction. Additionally, data from China showed that retail sales in April rose 17.7% year-on-year, compared to analysts’ estimate of 24.9%, and weighed on the China-sensitive AUD.
However, AUD / USD reversed its direction in the US session amid renewed selling pressure surrounding the dollar. The US Dollar Index, which turned positive on the day around 90.40, is currently losing 0.15% to 90.18.
On Tuesday, the Reserve Bank of Australia will release the minutes of its May meeting, in which the bank decided to leave its policy rate unchanged at 0.1%.
AUD / USD outlook
UOB Group currency strategists believe that AUD / USD is likely to trade between 0.7680 and 0.7830 over the next two weeks.
“The Australian dollar fell sharply to 0.7688 last Thursday (May 13) before recovering strongly on Friday,” strategists said. “The sharp but short-lived swings have resulted in a mixed outlook and the AUD is likely to trade within a wide range of 0.7680 / 0.7830 for now.”
Technical levels
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