AUD/USD price movements highlight the prevalent sentiment ahead of the RBA interest rate decision. The Australian economy has been recovering steadily; an aspect that has strengthened the Aussie against the greenback.
For instance, March retail sales rose by 1.4% compared to the forecasted 1%. In the same month, an additional 71,000 jobs were created. The employment growth has led to the unemployment rate dropping to 5.6% from February’s 5.8%. The expanding manufacturing sector and rising housing prices further substantiates the economy’s steady recovery.
With the strong economic data, investors are keen on whether the Reserve Bank of Australia will maintain a hawkish tone. At the same time, the bank is expected to leave the interest rates unchanged at 0.10%. It will also continue with its quantitative easing program. Currently, it is the second phase of the $78 billion asset-buying program. Notably, a hawkish tone will push AUD/USD higher.
AUDUSD Technical Outlook
AUD/USD is trading higher as investors focus on the RBA interest rate decision. After forming a double-top pattern, the pair fell below the neckline on Friday to an intraday low of 0.7697. However, in today’s session, it is up by 0.51% at 0.7751. On a 4-hour chart, it is trading along the 14 and 28-day exponential moving averages.
AUD/USD is likely to consolidate along the neckline at 0.7750 ahead of Tuesday’s event. If RBA maintains a dovish tone, the target will be at 0.7700. On the flip side, a hawkish tone could push the price to 0.7800 and higher at 0.7850.