Global macro overview for 18/07/2017:
The Reserve Bank of Australia Meeting Minutes indicated a positive attitude towards the second quarter GDP growth. The Gross Domestic Product (GDP) expanded 0.3% in the March quarter, but the data for June quarter "was generally positive" amid rebounding consumption growth. Nevertheless, RBA pointed out growing divergences in the domestic economy, especially in consumption, as it still remains generally subdued given the record level of household debt bearing down on consumers.
The RBA policymakers voted to keep the interest rate unchanged at the level of 1.5% at the June meeting, which is 11th month of no changes in monetary policy. The timing of the next interest rate hike remains unknown and there is a little clue from the policymakers about whether the interest rate hike could happen. The only economic signs of a possible hike in the nearest future are surging prices of houses and record debt levels. The RBA's next meeting is scheduled for August 1st and still, no change in policy is expected.
Let's now take a look at the AUD/USD technical picture on the daily time frame. The pair is soaring higher above the multi-month technical resistance at the level of 0.7832 and the recent top at the level of 0.7924 was its highest level since May 2015. The relative strength index advanced to 78%, warning that AUD/USD may have been overbought in large quantities in a very short period of time. Price pullbacks are expected to meet dip-buyers as the next technical support is seen at the level of 0.7832.
