RBA kept rates unchanged as expected, retains the neutral stance
Aussie dollar pays no heed to RBA decision.
The Reserve Bank of Australia kept rates unchanged at record low of 1.5 percent as expected and retained the neutral stance. The central bank cited household consumption as a source of uncertainty and reiterated the inflation is likely to remain low for some time.
Further, the central bank expects the stronger economy to lift wage growth over time, but also warned a stronger AUD could lead to slower economic pickup.
Overall, the statement was pretty much in line with what was expected, leaving the Aussie dollar at the mercy of the overall market sentiment. As of writing, the AUD/USD is better bid around 0.7685 and the S&P500 futures are reporting a 0.4 percent gain, signaling risk reset. So, the Aussie dollar may continue to gain altitude during the day ahead.
AUD/USD Technical Levels
A clear break above 0.7694 (10-day MA) would expose resistance at 0.7758 (March 27 high) and 0.7777 (100-day MA). On the downside, a move below 0.7652 (session low) could yield a deeper pullback to 0.7625 (Oct. 27 low) and 0.76 (psychological level).
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