AUD/USD: Bears keep 0.7300 on radar following no news from RBA Minutes, PBOC

AUD/USD stays depressed as scheduled event fail to offer any surprises, covid disappointments prevail.

RBA Minutes turn down rate hike, PBOC remains intact on policy moves.

Market sentiment dwindles amid mixed signals concerning Delta covid variant, US stimulus.

AUD/USD remains pressured, despite the recent uptick to 0.7340, during Tuesday’s Asian session. In doing so, the Aussie pair portrays the higher dominance of the coronavirus (COVID-19) news than the RBA Minutes and PBOC rate decision over the quote.

As per the latest minutes of the Reserve Bank of Australia (RBA), the policymakers reiterate their rejection of the rate hike before 2024 while saying “Will not increase cash rate until actual inflation is sustainably within 2-3% target range.”

Read: RBA Minutes: The bank's central scenario for the economy is that condition for rate hikes will not be met before 2024

On the other hand, the People’s Bank of China (PBOC) kept Loan Prime Rates (LPR) for one year and five years intact around 3.85% and 4.65%, as expected.

Read: China keeps its 1-year loan prime rate unchanged at 3.85%, as expected

Following the events, AUD/USD bounced off 0.7332 but couldn’t overcome the bearish bias amid the covid woes.

The updates over the US President Joe Biden’s infrastructure bill initially probed AUD/USD bears. Also positive for the pair was the news of one billion Pfizer jabs every week for Australia and comments of Aussie Epidemiologist Catherine Bennett who signaled, per the ABC News, that Victorian health authorities have the state's COVID-19 outbreak under control. That said, US Senate Majority Leader Chuck Schumer said, “Procedural vote on infrastructure bill will take place on Wednesday,” giving the much-needed relief to the markets even as he also said, “Wednesday not a deadline for every detail of the bill.”

It should, however, be noted a fresh seven-day lockdown in South Australia, as well as an extended activity restriction period of a week for Victoria, recalled AUD/USD bears.

Amid these plays, the US 10-year Treasury yields add 2.8 basis points (bps) to 1.209% by the press time whereas S&P 500 Futures print 0.44% intraday gains. Further, Australia’s ASX 200 also rises 0.40% on a day by the press time.

Having witnessed the initial reaction, actually no major reaction, to the RBA Minutes and PBOC Interest Rate Decision, AUD/USD traders will keep their eyes on the covid updates and other risk-related headlines for fresh direction. On the calendar, US housing figures for June may entertain the pair traders.

Technical analysis

AUD/USD needs to stay below 0.7340, comprising tops marked during September and November 2020, to direct the bear to the October highs near 0.7245. Otherwise, the 0.7400 threshold and July 09 lows near 0.7410 may lure the countertrend traders.