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The Reserve Bank of Australia (RBA) forwarded an optimistic message but positivity is tampered by the restart of lockdown restrictions in Melbourne. Terence Wu, an FX strategist at OCBC Bank, expects the aussie to see some intraday pressure. 

Key quotes

“The RBA kept policy rates unchanged. The RBA continued to peddle an optimistic message, highlighting that the ‘downturn has been less severe than earlier expected’. Nevertheless, the second wave of cases in Victoria, and the re-imposition of lockdown measures in Melbourne should dampen expectations somewhat.”

“We expect the immediate upside in the AUD/USD to be curtailed somewhat and will not rule out the possibility for the pair to trade lower in the coming sessions.”