A slight setback for the aussie on the RBA decision

There was no explicit hawkish message from the RBA in the policy statement today. But they did acknowledge that the recent progress on inflation has slowed down, while maintaining their forward guidance of “not ruling anything in or out”. The next key hint for traders will be Bullock’s press conference later. Her tone and language will be heavily scrutinised to see if there is any semblance of a more hawkish tilt today.

But for now, the aussie is taking a slight knock as buyers did not get the help needed to push past key resistance here. We’ll still have to see how things play out after Bullock though.

In any case, the near-term chart above shows that the setback isn’t a major one for the aussie. AUD/USD is still very much retaining a bullish near-term bias and holding on at the 0.6600 level for now. It will require a break back below the 100-hour moving average (red line) around 0.6567 to invalidate buyers’ conviction currently.

This article was written by Justin Low at www.forexlive.com.