The aud/usd rises after the decision of the RBA to maintain the fees, the attention moves to the FAR Minutes

• The AUD/USD rises after the Australia Bank maintains its reference interest rate by 3.85%.
• The Minutes of the FOMC meeting enter focus while investors look for clues about when the Fed could cut rates.
• The AUD/USD fails to gain traction above 0.6550, with prices fluctuating about 0.6530 at the time of writing.

The Australian dollar (AUD) is strengthening against the US dollar (USD) on Tuesday, after the decision of the Australian Reserve Bank (RBA) to maintain the stable cash rate at 3.85%.

The pair bounced before the surprise of the Hawkish position, allowing the aud/USD to recover part of the land lost after a 1% drop on Monday.

At the time of writing, the AUD/USD is negotiating about 0.6530 with the attention by changing to the minutes of the meeting of the Federal Open Market Committee (FOMC) of June, scheduled for publication on Wednesday.

The AUD/USD is strengthened by the surprise decision to maintain the RBA rate, with attention by changing to the FOMC minutes

Although the markets expected the RBA to cut the interest rates, Governor Michele Bullock defended the decision: “We will never return to the current price level, but at least we can stop their increase so fast.”

Bullock added that “betrayal would be to let inflation get out of control.”

Although inflation has cooled, the Board is not ready to declare victory. Bullock also made it clear that more data, especially the next consumer price index (CPI), will be key before the bank takes its next movement.

For the AUD/USD, the conclusion was immediate.

Although the Federal Reserve (FED) has maintained its stable reference rate between 4.25% and 4.50%, feat cuts have already been incorporated for this year. The big question has been when the US will begin to cut rates.

According to the CME Fedwatch tool, investors are currently assigning 62.9% probability to a 25 basic points cut in September.

FOMC minutes are expected to provide a deeper vision about the opinions of those responsible for inflation policies, monetary policy and perspectives for interest rates. These details can also help refine market expectations around at the time of possible rate cuts.

Any surprise in the minutes could change those probabilities and cause new volatility in the aud/USD torque.

The aud/USD fights to break the resistance of 0.6550

The Aud/USD currency pair is currently being negotiated below the 61.8% of the fall from September to April, which provides resistance around 0.6550. The rejection in the upper limit of the ascending wedge in the daily chart, along with the lack of breakdown above the 0.6600 psychological barrier, increased the expectations of a bearish reversion last week.

In spite of this, the positive impulse is still supported by the exponential mobile means (EMA) of 50 days and 200 days, currently positioned at 0.6475 and 0.6436, respectively. The formation of a golden cross occurs when the 50 -day EMA rises above the 200 -day EMA, indicating a possible wider upward trend.

Aud/USD Daily Graph

The Reading of the Relative Force Index (RSI) of 52 indicates a neutral impulse with a slight positive trend.

If there is a sustained breakup and remains above the exponential mobile socks (EMA), together with a 0.6600 level test, this could establish a target towards the maximum of November at 0.6689 and the level of recoil of 78.6% in 0.6722.

On the other hand, if prices break below the wedge support around 0.6372, it would mean a significant change in the market structure, which could lead to a greater fall to the 0.6200 area.