AUD/USD: Bulls bolstered by RBA’s rates-on hold, 0.7130 tested

By FXStreet FXStreet (Mumbai) – The Australian dollar picked-up significant strength versus its American counterpart following the RBA’s unchanged monetary policy decision.

AUD/USD hovers around 50-DMA

Currently, the AUD/USD pair trades modestly flat at 0.7110, retreating quickly from fresh session highs of 0.7129 reached on the cash-rate announcement. The Aussie caught a fresh bid tone after the RBA left the cash rates unadjusted at the record low of 2.0% at its monetary policy decision today, while maintained that the AUD continued to adjust in line with the lower commodities’ prices.

The AUD was boosted as the RBA maintained its optimistic outlook on the economy, while acknowledging that the recent global market turbulence could lead to weaker growth.

Overall, the RBA decision came in line with what markets had expected and hence, provided further fresh impetus to the Aussie pair.

AUD/USD Levels to watch

The pair heads higher and finds the immediate resistance at 0.7150/58 (round number/ 100-DMA) above which gains could be extended to the next hurdle located at 0.7175/0.7200 (daily R2/ psychological levels). On the flip side, the immediate support located at 0.7090 (Daily pivot/ 5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7044/24 (10-DMA/ 1h …read more

Source:: FX Street