Audusd Trades Higher

 Audusd Trades Higher

Aud/Usd Trades Above 0.67 As Pboc Keeps Rates Steady

AUD/USD is trading above the 0.6700 handles on Monday with mild gains as the market sentiment remains 'risk-on.' The upside seen in the AUD/USD is due to the PBoC's decision to maintain the policy rates.

Additionally, surging prices of gold and copper are also helping the AUD gain ground against the USD. The traders of the AUD/USD will also be looking forward to the upcoming Fed speakers for fresh impetus.

The daily chart of the AUD/USD shows that the pair is trading inside an ascending triangle. The 14-RSI also shows the presence of bullish momentum as the reading remains above 50.

Aud/Usd Looks Towards 0.6750 As Next Target

If the AUD/USD manages to break out of the ascending triangle, the next target will be 0.6714 and then the 0.6750 handle.

Another scenario is that the AUD/USD breaks below the 9 EMA located at 0.6634, which will send it towards the next support at 0.6610. Any more selling will open the doors to the 0.6550 support zone.

Since the start of the new trading week, the AUD/USD has maintained its bullish momentum, which is also a sign of weakness in the USD. The P BoC's decision to maintain the rates along with stimulus measures appears to be helping the AUD.

At the same time, the prices of copper and gold have turned higher, which also favors risk-on currencies such as the Australian dollar. Since Australia is a close trading partner of China, any positive developments from the Public Bank of China will also benefit the AUD.

Meanwhile, the DXY has staged a rebound from the 104.08 level as the Fed continues to stay cautious on rate cuts and the inflation situation. Up ahead, investors will be looking at the speeches of Fed Mary Daly and Fed Kashkari to get fresh impetus for the interest rate policy and inflation.

If we look at the AUD/USD long-term outlook, it also favors the AUD given the economic conditions of the Australia and USA.

Trending Stories