Overview:
AUD/USD is trading with bullish bias. Investors should turn spotlight on 00:30 GMT Australia February RBA monetary policy meeting minutes. AUD/USD is undermined by positive USD sentiment; weak commodity prices; the Aussie sales on soft AUD/NZD cross. But AUD/USD losses tempered by optimism over China's growth prospects; AUD-USD interest-rate differential; AUD demand on buoyant AUD/JPY as weak yen sentiment supports the cross. Daily chart is negative-biased as MACD and stochastics are in bearish mode.
Preference:
Buy above 1.031 with targets at 1.037 and 1.04 in extension.
Resistance levels:
R1 - 1.0374 (Friday's high)
R2 - 1.0400 (Feb. 6 high)
R3 - 1.0457 (Feb. 5 high)
Alternative scenario:
Sell below 1.031. Below 1.031 look for further downside with 1.027 and 1.0255 as targets.
Support levels:
S1 - 1.0273 (Monday's low)
S2 - 1.0255
S3 - 1.0198 (Oct. 15 low)
Technical comment:
The RSI calls for a new upleg.