AUD/USD holds steady around mid-0.6500s

AUD/USD gains some traction after RBA unexpectedly lowered interest rates.
A solid recovery in the US bond yields underpinned the USD and capped gains.
Tuesday’s key focus remains on G7 conference call amid absent economic data.

Haresh Menghani FXStreet

The AUD/USD pair struggled to capitalize on the post-RBA modest uptick and remained confined in a narrow trading band, just below mid-0.6500s.

Following an early dip to the 0.6510 region, the pair caught some fresh bids and rallied around 50 pips after the Reserve Bank of Australia (RBA) lowered its official cash rate by 25bps to a record low of 0.50%.

Traders await a fresh catalyst

Meanwhile, the fact that Australia PM Scott Morrison emphasized on the need for fiscal stimulus, dimming prospects for any further easing provided a modest lift to the aussie during the Asian session.

This coupled with some stability in the global financial markets extended some additional support to the perceived riskier Australian dollar and remained supportive of a mildly positive tone on Tuesday.

However, a strong recovery in the US Treasury bond yields from all-time lows helped ease the recent bearish pressure surrounding the US dollar, which eventually kept a lid on any runaway rally for the pair.

The pair lacked any strong follow-through and remained well within a three-day-old trading range as investors await Tuesday's G7 conference call before positioning for the next leg of a directional move.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6543
Today Daily Change	0.0017
Today Daily Change %	0.26
Today daily open	0.6526

Trends
Daily SMA20	0.6658
Daily SMA50	0.6788
Daily SMA100	0.6815
Daily SMA200	0.6839

Levels
Previous Daily High	0.6569
Previous Daily Low	0.6465
Previous Weekly High	0.6628
Previous Weekly Low	0.6434
Previous Monthly High	0.6775
Previous Monthly Low	0.6434
Daily Fibonacci 38.2%	0.6529
Daily Fibonacci 61.8%	0.6505
Daily Pivot Point S1	0.6471
Daily Pivot Point S2	0.6416
Daily Pivot Point S3	0.6368
Daily Pivot Point R1	0.6575
Daily Pivot Point R2	0.6624
Daily Pivot Point R3	0.6679

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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