Why AUD rose on RBA?
As expected, the Reserve Bank of Australia cut its benchmark rate by 25 bps to 2.5% – this decision was fully priced in before the release. The central bank’s statement, however, was perceived as “not as dovish”. The RBA said that inflation outlook “could provide some scope to ease policy further (not that it “provides” that as was said earlier) should that be required”. The last part means that the next cut may not take place in September.
AUD/USD formed a bullish hammer on the daily chart and is trading today on the upside approaching $0.9000. Resistance lies at $0.9070/76, $0.9150, $0.9317. Support is at $0.8906, $.8880, $0.8847 and $0.8830/00.
Chart. Daily AUD/USD