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  • The Aussie dollar is seeing little action after the RBA kept interest rates unchanged as expected.
  • The technical bias remains bullish after an upside break of the key falling trendline.
  • Focus on the Us midterm elections, Democrat victory in both houses is seen hurting the US dollar.

The AUD/USD barely moved after the Reserve Bank of Australia (RBA) held interest rates unchanged at 1.5 percent for the 26th straight month.

Despite the dismal third quarter inflation reading, the central bank maintained the central scenario of inflation at 2.25 percent in 2019 and bit higher in 2020. Further, the central bank revised higher the 2018 and 2019 GDP forecasts but reiterated that wage growth remains subdued and pointed to a slowdown in the housing markets in Sydney and Melbourne.

All-in-all, the policy statement offered little surprises, leaving the pair largely unchanged on the day at 0.7210.

On the technical charts, the currency pair is looking north, having scaled the nine-month-long trendline last week. The upside will likely gather momentum if the US midterm elections end up with a Democrat majority in both houses.

AUD/USD Technical Levels

AUD/USD

Overview:
       Last Price:  0.7207
       Daily change:  -5.0  pips
       Daily change:  -0.0693%
       Daily Open:  0.7212
Trends:
       Daily SMA20:  0.7112
       Daily SMA50:  0.7163
       Daily SMA100:  0.7269
       Daily SMA200:  0.7487
Levels:
       Daily High:  0.7219
       Daily Low:  0.7183
       Weekly High:  0.726
       Weekly Low:  0.705
       Monthly High:  0.724
       Monthly Low:  0.702
       Daily Fibonacci 38.2%:  0.7205
       Daily Fibonacci 61.8%:  0.7196
       Daily Pivot Point S1:  0.719
       Daily Pivot Point S2:  0.7168
       Daily Pivot Point S3:  0.7153
       Daily Pivot Point R1:  0.7226
       Daily Pivot Point R2:  0.7241
       Daily Pivot Point R3:  0.7263