AUD/USD Forecast: Can it Get Back to Its Two-Week High?

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AUD/USD is rebounding after closing lower on Wednesday. However, it remains below the 3-year high it hit in late February at 0.8000. This follows RBA’s decision to main interest rates at 0.10%. With the completion of initial $100 billion bond-buying program, the second phase is set to begin in the coming week. Tomorrow’s RBA financial stability review will further shed light on the country’s financial health.   

Investors are also eyeing Australia’s building approvals numbers that are scheduled for release on Friday. Analysts expect a reading of 21.6%, which will be higher than the previous month’s -19.4%.

AUD/USD is also reacting to the FOMC minutes released on Wednesday. The minutes confirmed the dovish tone in Fed’s March meeting. The committee acknowledged that while the US economic recovery is taking shape, it remains cautious. The greenback has dropped by 0.1% to 92.34. In the previous session, it had fallen to a two-week low of 92.15. Later today, the Fed Chair is set to speak at an IMF conference.

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AUDUSD Technical Outlook

On a one-hour chart, AUD/USD is trading above the 14 and 28-day exponential moving average. At its current price of 0.7636, the pair is likely to rise further and experience resistance at 0.7645. If it manages to move past that point on the upside, the next targets will be 0.7660 and 0.7677.

On the flip side, if AUD/USD drops, the support levels to look out for are 0.7620 and 0.7600. A further decline will have the bears testing 0.7560 and 0.7532.

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AUD/USD Chart

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