Bullish view
Buy the AUD/USD pair and set a take-profit at 0.7200.
Add a stop-loss at 0.7000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 0.7000.
Add a stop-loss at 0.7200.
The AUD/USD pair has remained in an upward trend as investors waited for key macro data from Australia and the United States. It jumped to 0.7127 on Monday and then pulled back slightly to 0.7100.
Australia Jobs Data and FOMC Minutes
The AUD/USD pair has risen in the past few weeks and has held steady in the past few months, moving from the June low of 0.6868 to the current 0.7100.
The Federal Reserve will publish the minutes of the last meeting. In that meeting, officials decided to leave interest rates unchanged between 3.50% and 3.75%, with three officials voting to hike interest rates. These minutes will provide more information about the meeting and what to expect later this year.
The AUD/USD pair will react to the upcoming macro data, such as industrial and manufacturing production, pending home sales, housing starts, and building permits. These numbers will provide more information about the state of the US economy, which will impact the next Federal Reserve actions.
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Meanwhile, the Australian statistics agency will publish the latest Wage Price Index (WPI) report on Wednesday. Economists expect the report to show that the index jumped by 0.8% in the second quarter. Rising wage growth often leads to more inflation pressure.
The AUD/USD pair will next react to the upcoming Australian jobs numbers on Thursday this week. All these metrics will help the Reserve Bank of Australia (RBA) when making its next interest rate decision. The bank left interest rates unchanged last week, with officials signaling that they may cut next year when inflation moves to 2%.
AUD/USD Technical Analysis
The daily chart shows that the AUD/USD pair has jumped to 0.7127, its highest level since June 5 this year. This rally has pushed it higher than the June low of 0.6868.
The pair has held steady above the 50-day Exponential Moving Average, which has provided it with strong support. Also, it has formed an ascending channel in the past few months.
The Relative Strength Index (RSI) has also continued rising this month. Therefore, the pair will likely continue rising in the coming days, with the next key target to watch being the psychological level of 0.7200.
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