The AUD/USD pair trades 0.17% higher to near 0.7085 at the start of the European trading session on Monday. The Aussie pair rises as the Australian Dollar (AUD) outperforms its peers ahead of the release of the Reserve Bank of Australia’s (RBA) monetary policy minutes of the February meeting on Tuesday.
In the policy meeting, the RBA hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% and kept the door open for further monetary tightening amid upside inflation risks.
Meanwhile, the US Dollar (USD) trades broadly stable as dovish Federal Reserve (Fed) expectations for the March and April policy meetings remain steady despite cooling United States (US) inflationary pressures in January.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up marginally to near 96.95.
The US Consumer Price Index (CPI) report showed on Friday that the headline inflation dropped to 2.4% Year-on-year (YoY) from 2.7% in December.
AUD/USD technical analysis
In the daily chart, AUD/USD trades at 0.7085. The 20-day exponential moving average rises, now at 0.6982. Pullbacks have been supported above this dynamic level, keeping the short-term bias positive. RSI at 66 remains in bullish territory without being overbought, confirming firm momentum.
The rising trend line from 0.6669 underpins the advance, offering support near 0.6997. Holding above the line would keep the topside path open, while a close below it could bring the 20-day EMA back into focus as the next support reference.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
RBA Meeting Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
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Source: https://www.fxstreet.com/news/aud-usd-price-forecast-more-upside-looks-likely-as-20-day-ema-slopes-higher-202602160612
