AUD/USD rate stages another attempt for 2022 opening range breakout 

AUD/USD appears to be unfazed by the RBA’s dovish forward guidance as it clears the February high (0.7284), and it remains to be seen if the update to Australia’s Gross Domestic Product (GDP) report will derail the recent advance in the exchange rate amid expectations for a slowdown in economic activity.

Australia is projected to grow 3.7% after expanding 3.9% during the third quarter of 2021, and indications of a slowing economy may keep the RBA on a preset course as the central bank pledges to “not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.” 

As a result, the advance from the January low (0.6968) may turn out to be a correction in the broader trend with the Federal Reserve on track to normalize monetary policy ahead of its Australian counterpart, but recent price action raises the scope for another run at the January high (0.7314) as it clears the February range. 

In turn, AUD/USD may continue to carve a series of higher highs and lows over the coming days if it shows a limited reaction to Australia’s GDP report, and a further appreciation in the exchange rate may fuel the recent flip in retail sentiment like the behavior seen in 2021.