AUD/USD: Chances to break the 0.72 mark while above 0.71

AUD/USD recovered some ground on Monday, ending the day not far below a daily high of 0.7149. Today, the aussie is on the back foot, trading around the 0.7130 mark, down 0.2% on a day. The pair is neutral-to-bullish in the short-term and could break through 0.7200, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“RBA Assistant Governor Chris Kent hit the wires, saying that the central bank is ready to buy bonds if needed to achieve its target for the 3-year yield of around 25bps. The country won’t release macroeconomic data this Tuesday.”

“The 4-hour chart shows that the aussie continues to develop above, but near a directionless 20 SMA, while the larger ones maintain their bullish slopes well below the shorter one. The Momentum indicator advances within positive levels, although the RSI consolidates around 60.” 

“As long as AUD/USD holds above 0.7100, the pair has room to extend its gains towards 0.7200 and beyond during the upcoming sessions, particularly if equities performance continues to improve.”