The RBA left interest rates unchanged and reiterated that both headline and underlying inflation remain above target. Policymakers also highlighted elevated uncertainty surrounding the economic outlook, particularly the impact that ongoing Middle East tensions could have on global energy prices. While the statement retained a cautious tone, some of the more hawkish language was softened.
From a technical perspective, however, the AUDUSD remains trapped within a well-defined cluster of key levels. The pair is currently trading near 0.7074. On the topside, the 100-day moving average at 0.70834 continues to cap gains and remains the key hurdle that must be broken to increase the bullish bias. On the downside, the 100-hour moving average comes in at 0.70417. Today’s low reached 0.7043, just above that support level, allowing buyers to maintain a foothold.
Separating those two boundary levels is a centerline defined by both the 200-hour moving average and the 50% retracement of the rally from the late-March low to the May high, which converge near 0.7055. That area has become the battleground between buyers and sellers.
As a result, traders remain caught between the 100-day moving average resistance above and the 100-hour moving average support below, with the 200-hour moving average/50% retracement area serving as the midpoint. A sustained break above the 100-day moving average would tilt the bias more firmly in favor of the buyers, while a move below the 100-hour moving average would hand greater control to the sellers. Until one of those levels gives way, the pair remains locked in a tug-of-war with neither side able to seize a decisive advantage.
SOURCE LINK : The RBA rate decision (rates unch) did little to break the AUDUSD one way or the other.
