AUD/USD jumps to 0.7420 on RBA’s rates on-hold, fresh 5-week tops

The AUD/USD pair extends its bullish run for the second straight day this Tuesday, now testing 0.74 handle on the release of RBA’s rates on-hold policy decision.

AUD/USD takes out 100-DMA at 0.7398

Currently, the AUD/USD pair jolted +0.48% higher to hit fresh five-week highs at 0.7402, building on gains above Monday’s high at 0.7380. The Aussie stalled its side-trend and broke sharply to the upside after the RBA left the cash rate unchanged at 1.75% at its monetary policy review meeting held today.

The RBA noted in its policy statement, "taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time."

The RBA justified its status-quo stance noting that it expects inflation to return to target aid improving growth prospects backed by expanding domestic demand and exports.

Markets now digest the latest policy outcome amid broad based US dollar weakness, as focus now turns towards the Chinese trade figures due to be published tomorrow.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7450 (psychological levels) above which gains could be extended to the next hurdle located at 0.7482/0.7500 (May 6 High// round number). On the flip side, the immediate support located at 0.7336/32 (5-DMA/ 1h 50-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7300/0.7292 (round figure/ Daily S2).