- AUD/USD showed a move down to near 0.6840 amid calm market sentiment due to the long weekend in the US.
- The Aussie dollar’s appeal was reduced ahead of the RBA and PBoC policy minutes.
- AUD/USD is climbing higher in a rising channel where every pullback is seen as a buying opportunity.
The AUD/USD pair retreated after facing the barricades around 0.6880 in the European session. The Australian asset fell to near 0.6840 as investors are cautious ahead of the release of minutes from the Reserve Bank of Australia (RBA) and Monetary Policy announcement by the People’s Bank of China (PBoC).
The US dollar index (DXY) is showing lackluster performance as markets in the United States are closed on Monday for Juneteenth.
Meanwhile, US Treasury yields rose further as the Federal Reserve (Fed) confirmed a 50 basis point (bps) interest rate expansion to 5.50-5.75%. Yields on 10-year US Treasuries jumped to 3.82%.
AUD/USD is moving higher on the Rising Channel chart, which is formed on an hourly scale, where every pullback is seen as a buying opportunity. The Aussie has tested the territory under the aforementioned pattern, but is finding a cushion near the horizontal support drawn from the June 14 high at 0.6834.
The upward-declining 100-period EMA at 0.6826 suggests that the trend is bullish.
The Relative Strength Index (RSI) (14) is gaining support near 40.00. A recovery above 60.00 would strengthen the upside momentum.
A decisive break above the 0.6900 round resistance will drive the asset towards the February 16 high at 0.6936 followed by the February 7 high at 0.6988.
On the other hand, a dip below June 14 at 0.6756 will reveal Australian assets to a May 2 high of 0.6717 and a May 19 high of 0.6675.