- RBA kept interest rates unchanged at 1.5 percent as expected.
- The policy statement offered little surprises, thus leaving the Aussie dollar at the mercy of the broader market sentiment.
The AUD/USD remains mildly bid around 0.7340, having defended 0.7327 (61.8% Fib R of Jan 2016 low – Jan 2018 high) yesterday.
The currency pair is seeing little action after the Reserve Bank of Australia (RBA) kept the interest rate unchanged at the record low of 1.5 percent. Moreover, a status quo decision was in line with the market expectations.
Further, the policy statement did not offer a major hawkish or dovish surprise, thus leaving the Aussie dollar at the mercy of the Yuan exchange rate.
The Chinese currency fell to fresh 11-month low earlier today after the PBOC announced a weaker fix and dragged AUD lower with it. However, FX intervention from the state-owned banks put a floor under CNY and also saved the day for AUD bulls.
AUD/USD Technical Levels
Resistance: 0.7363 (100-hour moving average), 0.7382 (200-hour moving average), 0.7411 (July 1 high resistance on 4-hour chart).
Support: 0.7327 (61.8% Fib R of Jan 2016 low – Jan 2018 high), 0.73 (psychological support), 0.7160 (December 2016 low).
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