The Reserve Bank of Australia gave the Australian dollar a boost, as it not only kept interest rates unchanged as expected but also retained its neutral bias towards future policy. There were some contradictory signals from RBA officials and weak data recently that made a shift of bias possible during this meeting. As the RBA held, the aussie jumped above 77 cents after briefly dipping below 76 US cents against the dollar before the central bank’s announcement.Technical AnalysisAUD/USD rallied to 0.7708 early on Tuesday after the RBA held rates unchanged. The immediate bias is to the upside since momentum is strong – RSI is above 50 on the hourly chart and prices are above the hourly Ichimoku cloud.On the daily chart, today’s move higher is still seen as a correction to the down trend from 0.8162 to 0.7597. The market is below the daily Ichimoku cloud and will likely find resistance from the lower cloud level around 0.7714. Meanwhile the tenkan-sen crossed below the kijun-sen line and this is a bearish signal. The downside bias remains strong as long as the market trades below the 50% Fibonacci retracement level of 0.7847 of the upleg from 0.7532 to 0.8162. Support lies at 0.7532 – the April 2nd low.
AUD/USD Daily Chart