AUD/USD pulls away from daily highs, steadies above 0.7700 ahead of RBA Minutes
- AUD/USD loses traction after edging higher in early American session.
- US Dollar Index extends sideways grind around 90.50.
- Reserve Bank of Australia will release June Meeting Minutes on Tuesday.
The AUD/USD pair reached a daily high of 0.7726 during the American trading hours but struggled to preserve its bullish momentum. As of writing, the pair was up 0.03% on a daily basis at 0.7710.
Eyes on RBA Minutes
In the absence of significant fundamental drivers and macroeconomic data releases, AUD/USD is having a difficult time making a significant move in either direction on Monday. Reflecting the subdued market action, the US Dollar Index remains on track to close little changed around 90.50.
Meanwhile, Wall Street's main indexes are trading mixed at the start of the week, not providing a clue regarding the risk perception. Currently, the S&P 500 is down 0.3% while the Nasdaq Composite is rising 0.4%.
In the early Asian session on Tuesday, the Reserve Bank of Australia (RBA) Meeting Minutes will be looked upon for fresh impetus.
In a recently published report, analysts at Bank of America Global Research argued that the RBA will update its policy guidance at its next meeting on July 6.
"Considerable stimulus will likely remain in place," analysts further added. "A more open-ended third round to QE is more likely to commence at the current pace of AUD5bn per week where RBA purchases would reach AUD60bn after 3 months. An extension of QE would help to keep net ACGB supply negative in the new fiscal year and help to temper 10yr swap spread tightening."
Technical levels to watch for