AUD/USD ticks higher as RBA said terms of trade have been stronger than earlier expected

The RBA kept interest rates unchanged as expected, but upgraded language on terms of trade.
The AUD/USD is now reporting marginal gains, having recovered from the session lows after the RBA rate decision.

Omkar Godbole FXStreet Contributor

The AUD/USD pair jumped 16 pips to a session high of 0.7365 after the Reserve Bank of Australia (RBA) kept interest rates unchanged at a record low of 1.5 percent, as expected, but upgraded the language on international trade.

The central bank reiterated that the international trade has been stronger than earlier expected, and more importantly, excluded the sentence stating the terms of trade are expected to decline over time.

The gains, however, could be capped by RBA's cautious tone on household income, high debt levels and wage growth. Notably, the central bank cited household consumption as a continued source of uncertainty.

All-in-all, the policy statement does little to alter expectations of the interest rate lift off in 2020.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.736
    Today Daily change: 7.0 pips
    Today Daily change %: 0.0952%
    Today Daily Open: 0.7353
Trends:
    Previous Daily SMA20: 0.7262
    Previous Daily SMA50: 0.7183
    Previous Daily SMA100: 0.7242
    Previous Daily SMA200: 0.7421
Levels:
    Previous Daily High: 0.7394
    Previous Daily Low: 0.7318
    Previous Weekly High: 0.7345
    Previous Weekly Low: 0.7199
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7347
    Previous Daily Fibonacci 61.8%: 0.7365
    Previous Daily Pivot Point S1: 0.7316
    Previous Daily Pivot Point S2: 0.7279
    Previous Daily Pivot Point S3: 0.724
    Previous Daily Pivot Point R1: 0.7392
    Previous Daily Pivot Point R2: 0.7431
    Previous Daily Pivot Point R3: 0.7468

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold clings to gains as US-Iran conflict continues to underpin safe-haven assets

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.