FxWirePro: AUD/USD spikes over 0.60% to break above 38.2% Fib, Aussie ignores dovish RBA minutes

AUD/USD chart - Trading View 

AUD/USD was trading 0.63% higher on the day at 0.7455 at around 05:00 GMT.

The pair has resumed upside after back-to-back Doji formation in the previous two sessions.

Aussie has brushed aside dovish RBA minutes and the pair buoyed amid risk-on mood and retreat in the US Treasury yields which dent the greenback.

The Reserve Bank of Australia (RBA) October meeting Minutes reiterate that inflation target of 2-3% will not be achieved until 2024.

The board members acknowledged that the delta variant interrupted the economic recovery, but remained optimistic about the economic growth.

On one side, China’s growth concerns weighed on the sentiment, however, higher commodity prices provide some support to the Aussie.

Retreating US Treasury yields undermined the USD. Traders await US Housing Start, and Building Permits to gauge the market sentiment. 

Technical bias for the pair is bullish. Price action has shown a break above 38.2% Fib retracement and is refreshing multi-week highs. 

Momentum is bullish, volatility is high, scope for further gains. Next major resistance lies at 50% Fib at 0.7556 ahead of 200-DMA at 0.7564.