The Reserve Bank of Australia board members decided to keep the Official Cash Rate unchanged at 4.35% after its May monetary policy meeting on Tuesday. The policy announcement was widely expected by the markets. The RBA extended its pause for the fourth meeting in a row.
Extra gains may enable the AUD/USD to revisit the May high of 0.6647 (May 3), which comes just ahead of the March top of 0.6667 (March 8) and the December 2023 peak of 0.6871.
Meanwhile, if sellers take control, spot may challenge the key 200-day SMA at 0.6520 prior to the May low of 0.6465 and its 2024 bottom of 0.6362 (April 19).
Looking at the big picture, a sustained break above the important 200-day SMA would almost certainly result in more gains.
On the 4-hour chart, spot looks to have regained bullish momentum. The initial up-barrier develops at 0.6647, ahead of 0.6667. On the downside, the 200-SMA comes at 0.6521 ahead of 0.6465. In addition, the RSI dropped a tad to around 66.
Source : FX Street
