AUD/USD testing resistance at 1.6740 amid the positive risk sentiment

• The Aussie has resumed its upside path to test 0.6740 resistance.
• Hawkish RBA minutes are supporting the AUD.
• The Dollar remains depressed with Fed officials sending mixed signals.

The Aussie Dollar is trading in a moderately bid tone this week, with price action crawling towards the 1.6740 resistance area, with the pair favoured by positive market sentiment and a weaker US Dollar.

A hawkish RBA has given a fresh boost to the Aussie

Earlier on Tuesday, the monetary policy minutes of the RBA´s last meeting have shown a hawkish tone that has increased bullish pressure on the pair. The RBA observed “encouraging signs” on inflation trends yet it maintained the options open for further tightening if needed.

This contrasts with the dovish tone of Fed Chairman Jerome Powell after last week´s Fed meeting, which is still weighing on the US Dollar. The mixed message given by Fed speakers has done little to support a weak USD, with US bond yields nailed at multi-month lows.

Technical indicators remain positive with a bullish cross between the 4-H 50 and 100 SMAs giving fresh hopes for buyers. Above 0.6740, the next targets would be the late July highs at 0.6820 and 0.6850.

Support levels are 0.6665 and 0.6615.

Technical levels to watch