The Reserve Bank of Australia decided to keep the current policy unchanged as widely expected. However, and against all odds, the bank took the first steps toward winding back emergency monetary stimulus for an economy that’s exceeded forecasts. Even though many saw the bank hinting for a possible increase in asset purchases amid partial lockdown in parts of the county due to the high rate of covid19 cases. Yet, the plan to taper by 1B in September could be a message that the RBA is seeing some inflation pressure on the horizon. In the meantime, AUDUSD is still in a retracement mode, which may target 0.7470 and 0.7530’s before the downside trend resumes. Therefore, I would long some AUDUSD around here 0.7380’s with a stop at today’s low only.
4H chart
Daily chart
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 0.7252 | 0.7305 | 7333 | 0.7358 | 0.7386 | 0.7411 | 0.7464 |
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