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A lack of top-tier U.S. data releases means we gotta pay more attention to risk-taking!

How is AUD/USD’s chart looking ahead of RBA’s policy decision?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

AU MI inflation gauge up by 1.1% in May vs. 0.1% downtick in April

AU ANZ job ads up by 0.4% vs. 2.0% drop in April

Caixin services activity records a third straight monthly contraction, up from 36.2 to 41.4 in May

Reuters: Biden to issue a 24-mo waive on solar panel tariffs from Cambodia, Malaysia, Thailand, and Vietnam

Beijing reopens restaurants, lifts COVID restrictions in most areas

Saudi Arabia hikes oil prices sharply, sending US crude futures up to a 3-month high

British PM Boris Johnson to face no-confidence vote from Conservative party between 6-8 pm local time

Stocks, USD firm ahead of rate meetings, crude hits $120

Upcoming Potential Catalysts on the Forex Economic Calendar:

German, French, and Swiss markets are out on bank holiday
U.K. BPC retail sales monitor at 11:01 pm GMT
Japan’s household spending and average cash earnings at 11:30 pm GMT
RBA’s policy decision at 4:30 am GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/USD

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

It’s shaping up to be a risk sentiment kinda day as the U.S. isn’t scheduled to print major data releases while the German, French, and Swiss markets are out on bank holidays.

If Asian session trading was any clue, then traders feel like taking risks after a better-than-expected U.S. NFP report put a Fed rate hike pause on the table.

It also helped that China is reopening its economy further starting with less COVID restrictions in Beijing.

Can traders sustain the risk-taking vibes in the next trading sessions?

AUD/USD has just bounced from the .7200 major psychological handle that lined up with a trend line and 100 SMA support on the 1-hour time frame.

Continuation of risk-taking, along with the pricing in of a 0.40%-interest rate hike from the Reserve Bank of Australia (RBA) might push AUD/USD to its June highs.

Watch out for bearish news, though! If the intraday uptrend that we’re seeing hits a pause or gets knocked down, then trend continuation fans can look to the 1-hour chart’s trend line support for potential entry zones.