AUD/USD refreshes session tops post RBA announcement

The AUD/USD pair stalled disappointing current account data-led slide near 0.7460-55 region and is now headed back to the top end of daily trading range post RBA monetary policy announcement.

Currently trading around 0.7485-90 region, the pair managed to find support after RBA, on expected lines, maintained status quo and left its key benchmark interest rate at record low level of 1.5%. 

Meanwhile, central bank judged steady policy consistent with growth and inflation targets. The RBA, however, said that an appreciating Australian Dollar would complicate economic rebalancing while remained concerned over high level of Chinese debt, which poses a medium term risk.

A slightly cautious RBA did little to attract any fresh selling interest, albeit assisted the pair to recover early losses led by an unexpected jump in Australian current account deficit during the first quarter of 2017, at A$3.1 billion and could have its impact on the official GDP figures for the same period.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The short term picture is strongly bullish, as the price has accelerated far above its moving averages, whilst technical indicators retain their upward slopes within overbought readings. The pair has a strong static resistance at 0.7515, from where the pair retreated twice late May, with stops likely gathering above it, and therefore anticipating a probable upward extension on a break beyond it."