AUD/USD Jolts Higher to 0.7630, RBA Keeps Rates On-Hold
The AUD/USD pair reversed losses and jumped back on the bids after the RBA decided to keep its official cash rate unchanged at a record low of 2.0% at its policy meeting today.
AUD/USD pops on RBA’s status-quo
Currently, the AUD/USD pair jumps 0.22% to 0.7622, easing quickly from fresh daily highs posted at 0.7631 immediately post-RBA decision. The Aussie witnessed about 40-pips knee-jerk spike beyond 0.76 barrier after the RBA made no adjustments to its monetary policy stance, although noted that lower inflation level provides further scope for easing. While for the AUD level, the central bank stated, "The Australian dollar has appreciated somewhat recently, in part, this reflects some increase in commodity prices, but monetary developments elsewhere in the world have also played a role. Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy."
Earlier today, the Aussie fell to fresh five-day lows of 0.7570 on the back of bad Aus trade data and risk-off of market profile. The trade deficit expanded from $3.16 billion in January to $3.41 billion in February, against expectations of a $2.44 billion gap.
In the day ahead, markets will continue to assess the RBA’s decision and will look forward to the broader market sentiment for further cues ahead of the US economic releases later in the NY session.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7641/53 (5-DMA/ daily R1) above which gains could be extended to the next hurdle located at 0.7700 (round number). On the flip side, the immediate support located at 0.7508/00 (Mar 29 Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7480/75 (daily S3/ Mar 24 Low).
(Market News Provided by FXstreet)