AUD/USD Price Forecast: More upside looks likely as 20-day EMA slopes higher

• AUD/USD rises to near 0.7085 as the Australian Dollar outperforms its peers.
• The RBA raised its OCR by 25 bps to 3.85% in the policy meeting this month.
• The US Dollar remains steady even as US inflation cools down.

The AUD/USD pair trades 0.17% higher to near 0.7085 at the start of the European trading session on Monday. The Aussie pair rises as the Australian Dollar (AUD) outperforms its peers ahead of the release of the Reserve Bank of Australia’s (RBA) monetary policy minutes of the February meeting on Tuesday.

In the policy meeting, the RBA hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% and kept the door open for further monetary tightening amid upside inflation risks.

Meanwhile, the US Dollar (USD) trades broadly stable as dovish Federal Reserve (Fed) expectations for the March and April policy meetings remain steady despite cooling United States (US) inflationary pressures in January.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up marginally to near 96.95.

The US Consumer Price Index (CPI) report showed on Friday that the headline inflation dropped to 2.4% Year-on-year (YoY) from 2.7% in December.

AUD/USD technical analysis

In the daily chart, AUD/USD trades at 0.7085. The 20-day exponential moving average rises, now at 0.6982. Pullbacks have been supported above this dynamic level, keeping the short-term bias positive. RSI at 66 remains in bullish territory without being overbought, confirming firm momentum.

The rising trend line from 0.6669 underpins the advance, offering support near 0.6997. Holding above the line would keep the topside path open, while a close below it could bring the 20-day EMA back into focus as the next support reference.

(The technical analysis of this story was written with the help of an AI tool.)