AUDUSD Bounces Off 50-Day Average

Earlier today, the RBA minutes from the recent monetary policy decision revealed that the central bank expects inflation to pick up and that recent developments have brought forward the likely timing of the first-rate hike.

“Australian rate market participants have priced in around 11bps of hikes by the next RBA meeting on 3rd May and 33bps of hikes by the following 7th June meeting. So the looming prospect of RBA rate hikes should continue to keep the Aussie well bid in the coming months.” economists at MUFG Bank reported after the minutes.

Technically speaking, if the pair drops below the 50-day average (the purple line), currently near 0.7345, there is another significant support just some pips below - the medium-term uptrend line. After all that, the 200-day moving average (the green line) stands at 0.72. Therefore, any long positions in this area should be well placed from the technical perspective.

Alternatively, if sentiment improves and the Australian dollar jumps again, the short-term resistance will be at today's highs of 0.74 before rising toward the previous swing top near 0.7440.