AUD/USD Price Analysis: Shifts confidently above 0.6700 on mildly-hawkish RBA minutes

• AUD/USD climbed above 0.6720 after a decent recovery backed by mildly-hawkish RBA minutes.
• RBA policymakers were actively considering a continuation of a rate hike before keeping rates steady.
• The Aussie asset has been juggling between the 50% and 61.8% Fibonacci retracements.

The AUD/USD pair has stretched its recovery above 0.6720 in the early European session. The recovery in the Aussie asset is backed by mildly-hawkish Reserve Bank of Australia (RBA) minutes and a minimal correction in the US Dollar Index (DXY).

The USD Index has corrected to near 102.00 after a stellar recovery. The upside bias in the USD Index has not faded yet amid supportive fundamentals.

A scrutiny of RBA minutes showed that policymakers were actively considering a continuation of the rate hike but later settled on keeping rates steady at 3.6% to allow time to gather more information.

AUD/USD has shown a stellar recovery after building a strong base inside the 50% and the 61.8% Fibonacci retracements, which are placed at 0.6713 and 0.6690 respectively. The Fibonacci retracement is plotted from April 10 low at 0.6620 to April 14 high at 0.6806.

The Aussie asset has comfortably established above the 20-period Exponential Moving Average (EMA) at 0.6708, which indicates that the short-term trend is bullish.

After a range shift move from the bearish territory of 20.00-40.00 to the neutral range of 40.00-60.00, the Relative Strength Index (RSI) (14) is making efforts to climb above the 60.00 hurdle.

Going forward, a break above March 22 high at 0.6759 will drive the asset toward April 03 high at 0.6693. A breach above the latter would further drive the asset to February 06 low at 0.6855.

In an alternative scenario, more weakness will be observed on a breakdown of April 10 low at 0.6620, which will expose the Aussie asset to March 10 low at 0.6564 followed by the round-level support at 0.6500.

AUD/USD hourly chart