• The People’s Bank of China meet the market expectations to keep the benchmark interest rates unchanged.
• Ukraine rejection of Russian demand to surrender port city in exchange for safe passage weigh on the market sentiment.
• RBA’s Philip Lowe speech will be the major catalyst in directing the pair, traders will also keep an eye on Ukraine headlines.

Australian dollar edges higher against the American dollar during Monday trading session. The Aussie pair cheers the the People’s Bank of China’s (PBOC) inaction and  softer US dollar. However the market sentiment remains sour due to Ukraine crisis and china covid update.

The People’s Bank of China’s (PBOC) kept its policy rate unchanged at 3.7% despite a resurgence of Covid-19 in the Chinese economy. Australia, a leading exporter to China will find some support if PBoC reduces their rates. Moving ahead, Market will focus on interest rate decision from the People’s Bank of China (PBoC) due on Thursday.

Talking about the Ukraine crisis, Russia demanded that Ukrainians put down their arms and raise white flags on Monday in exchange for safe passage out of town. As a response, Ukraine angrily rejected the offer, which came hours after officials said Russian forces had bombed an art school that was sheltering some 400 people. While the fight for control of the strategically important city remained intense, Western governments and analysts see the broader conflict shifting to a war of attrition.

China’s risisng covid cases also hampers the market sentiment. Average number of new infections reported each day in Mainland China rises by more than 1,900 over the last 3 weeks, 40% of its previous peak.

Moving on, the speech from the Reserve Bank of Australia (RBA)’s Governor Philip Lowe will the key catalyst for directing the quote. The speech from the RBA’s Chair Philip Lowe will guide the investors about the likely monetary policy action from the RBA in April.

AUD/USD 4 Hour Chart:

Support: 0.7376 (S1), 0.7339 (S2), 0.7319 (S3).

Resistance: 0.7433 (R1), 0.7454 (R2), 0.7491 (R3).

The commodity linked currency trades high amidst the sour market sentiment; we expect a bullish trend for AUD/USD.