AUD/USD sees little action as RBA sticks to the script

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.

Omkar Godbole FXStreet Contributor

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 temporary floor under CNY for now and that may have helped the AUD/USD recover from the session low of 0.7314 to 0.7340.

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).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	High
1H	Bearish	Neutral	Shrinking
4H	Strongly Bearish	Neutral	High
1D	Bearish	Oversold	Shrinking
1W	Bearish	Neutral	Shrinking
Updated Jul 3, 04:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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