The Australian dollar closed with some solid gains against the greenback, surging up to 0.7150, a fresh 2-week high, holding nearby by the end of the day.
The sentiment towards the Aussie has been strong ever since the pair bottomed around 0.6900 earlier this month, and an overall bullish sentiment, despite Chinese woes prevails.
During the upcoming hours, the RBA will release the Minutes of its latest meeting, although the theme of the day has been that former Cabinet Minister Malcolm Turnbull challenged PM Tony Abbott leadership, imposing himself by 54 votes to 44 among the ruling party, resulting in the sixth prime minister in eight years.
The news had little impact on the currency so far, although it can result in some local turmoil during the upcoming days.
Technically, the 1 hour chart shows that the technical indicators have lost their upward strength near overbought levels, but with the price consolidating well above a bullish 20 SMA, the downside seems limited.
In the 4 hours chart, the 20 SMA continues providing a dynamic support now around 0.7070, whilst the RSI indicator hovers around overbought territory and the Momentum indicator aims higher above its mid-line, supporting further gains ahead.