AUDUSD Price Analysis: 21 DMA appears a tough nut to crack for bulls

• AUDUSD bulls run into the 21 DMA hurdle on Tuesday yet again.
• Hawkish RBA minutes and Bullock’s commentary power the aussie.
• Daily close above 21 DMA needed to confirm a near-term bottom.

AUDUSD is consolidating the renewed upside above 0.6800, having met fresh offers just shy of the 0.6850 mark in the last hour.

AUD bulls could be biding time for the next push higher, as markets are now wagering odds of a 75 bps RBA rate hike in August after last week’s solid Australian employment report.

Additionally, hawkish July meeting minutes published by the RBA earlier on, suggested that the bank remains on track for further rate increases, as inflation control remains its priority. The aussie caught a fresh bid on the minutes release, bouncing from near 0.6800 to the 0.6830 region.

The further upside was fuelled by the hawkish comments from RBA Deputy Governor Michelle Bullock, as she affirmed that further rate increases will be needed in the months ahead.

However, it remains to be seen if the spot manages to find acceptance above the critical 21-Daily Moving Average (DMA) at 0.6847. Daily closing above the latter will put a near-term bottom in place for the aussie.

The next upside target is seen at 0.6900 the figure, which is also the July 11 high.

The 14-day Relative Strength Index (RSI) is marching higher to test the midline, justifying the recovery momentum.

AUD/USD: Daily chart

On the flip side, a rejection at the 21 DMA will recall sellers, opening up the downside once again towards the 0.6800 demand area.

The previous day’s low of 0.6787 will be back on their radars, with the last line of defense seen at 0.6750 – the psychological level.

AUD/USD: Additional levels to consider