AUD/USD (current price: 0.7457)
The Australian Dollar got a slight boost in early trading as the minutes from the latest RBA Meeting didn’t hint on further rate cuts after the surprise easing from the central bank in May. The Aussie rose above 0.75 against the USD for the first time since April, as we expected, but closed under the crucial level as the rally fizzled during the afternoon session. The late weakness of precious metals combined with the strength in the Dollar pushed the pair lower to finish close to unchanged for the day.
Our assessment: The Aussie continues to act strong as we suggested earlier, and new short-term rally highs seem likely during the week, especially if tomorrow’s vote plays out according to the recent polls.
