FXStreet (Mumbai) – AUD/USD accelerated gains and continued its upbeat momentum in the late-Asian session, largely as the Australian dollar marched further towards 0.77 barrier versus the greenback after RBA left monetary policy on hold, keeping the cash rate at a record-low 2%.
AUD/USD extends gains from 0.7660
Currently, the AUD/USD pair trades 0.93% at 0.7676, retracing from fresh session highs reached at 0.7684. The Australian dollar continues to be heavily bid across the board after the central bank left its monetary policy unchanged today, while keeping doors open for further rate cuts depending on economic conditions.
The move was widely expected by the market and with inflation within the target, the market took a breather given the RBA’s neutral stance.
RBA Governor Glenn Stevens said in the statement today, “The economy is likely to be operating with a degree of spare capacity for some time yet. With very slow growth in labour costs, inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.”
Meanwhile, markets now shift their focus towards a set of US macro release later in the day for further impetus on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7700 levels, above which gains could be extended to 0.7729 (April 29 High) levels. On the flip side, support is seen at 0.7600 levels from here it to 0.7568 (April 15 Low) levels.
(Market News Provided by FXstreet)