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  • The AUD/USD pair’s initial reaction to the rate cut decision fails to last-long.
  • Early-day Aussie data have been mixed.
  • Trade/political headlines, RBA’s Lowe’s speech, US PMI will be in the spotlight for now.

With the RBA matching most market consensus, AUD/USD stays little changed around 0.6750 ahead of the European opening on Tuesday.

The Aussie central bank marched wide market expectations of a 25 basis points’ (bps) cut to its benchmark Cash Rate. However, investors seem more concerned with the RBA Rate Statement that mentions “gentle turning point appears to have been reached.”

With this, the quote initially surged more than 30 pips to 0.6776 but later on witnesses pullback to near-0.6750 area.

Earlier during the day, upbeat readings of Australia’s September month Purchasing Managers’ Index (PMI) from AiG and Commonwealth Bank confronted disappointing Building Permits for August. As a result, China’s absence from markets curbed the Aussie momentum.

Following the initial reaction to the Reserve Bank of Australia’s (RBA) latest monetary policy decision, the AUD/USD pair traders will now await statements from the Govern Philip Lowe, who is scheduled to speak at the RBA Board Dinner around 09:20 GMT. Furthermore, the US ISM Manufacturing Purchasing Managers’ Index (PMI) for September, expected 50.00 versus 49.1, will also be entertaining the traders during the day.

Technical Analysis

An upside clearance of 23.6% Fibonacci retracement of July-August downside, near 0.6770, becomes necessary for the AUD/USD pair to register fresh pullback targeting 21-day simple moving average (SMA) level around 0.6810, failure to which can keep exerting downside pressure on the pair towards 0.6740/35 and 0.6700 supports.