Aussie higher ahead of RBA minutes

The Australian dollar is gaining ground against the US dollar, as traders prepare for the latest minutes release from the Reserve Bank of Australia.

The Aussie is trading at $0.9412, up 0.15% on the day, following its good run since the unemployment rate dropped last week to 5.8%. This is a sign that the interest rate cuts have trickled down into the economy.

The slightly dovish comments from Janet Yellen last week, coupled with the unexpected drop in the jobless rate, pushed the Australian dollar to fresh highs this year.

The Aussie has been trading within a tight range of $0.9380-$0.9420 recently. As I mentioned previously, if the Australian dollar is to keep reaching new highs for 2014 it will be the Australian economy that drives it not US dollar weakness. If the minutes from the RBA are not dovish we could see the Aussie trade towards the $0.95 mark, with the 100-hour moving average providing support at $0.9389.

Spot FX AUD/USD chart

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