AUD/USD attempting gains as RBA sees pick in global inflation

AUD/USD pair is attempting gains, now trading around 0.7735 levels on the back of slightly upbeat comments from RBA and a better-than-expected house price index number.

RBA sees pick up in global inflation

The minutes showed the policymakers see a pickup in global inflation. This could strengthen the bid tone around the Aussie as higher inflation means higher commodity prices. However, the central bank also warned about the faster rise in the household debt.

Meanwhile, Australia house price index jumped 4.1% q/q from the previous figure of 1.5%. The annualised number came-in at 7.7%.

AUD/USD Technical Levels

A break above 0.7748 (yesterday’s high) would open doors for 0.7778 (Nov 8 high). A violation there on the daily chart could see the spot target 2016 high of 0.7835. On the downside, strong support is seen at 0.7649 (Feb 21 low), which, if breached could yield a sell-off to 0.76 (zero figure) and possibly to 0.7580 (Mar 14 high).