FXStreet (Bali) – AUD/USD is taking without a particular bias following the RBA decision to hold interest rates at 2% as universally expected by the market, while offering no explicit bias.
Some demand has emerged ahead of 0.7465, while on the topside, offers ahead of 0.75 round number are capping progress so far.
RBA keeps interest rates unchanged at 2%, absence of fresh clues
RBA said in its statement: “The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Information on economic and financial conditions to be received over the period ahead will inform the Board’s assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.” As per AUD levels, RBA reiterated that a lower AUD is needed: “Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.”
AUD/USD technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, shared her insights: “Technically, the 1 hour chart shows that the price is moving back and forth around a horizontal 20 SMA, whilst the technical indicators are turning lower around their mid-lines. In the 4 hours chart, the technical indicators have resumed their declines well into negative territory after correcting oversold readings, supporting a downward extension on a break below 0.7460, the immediate intraday support.
(Market News Provided by FXstreet)