AUD/USD continues to sit just under 0.6800 currently
The pair is trading little changed around 0.6790 at the moment as the RBA offered little in terms of anything new for traders and investors on the day.
They mentioned that monetary policy is set to remain accommodative for as long as it is required, whilst keeping their forward guidance on rates and the yields target unchanged.
That perhaps gives them room to scale back on some recent policy actions if need be, but ultimately they would still prefer it to be accompanied by progress in the labour market and inflation. For some context, the RBA had already stopped QE for a few weeks now:
Overall, I think what was not said is perhaps more important than what was said.
The RBA made no special mention to the recent rise in the aussie – the currency has gained by over 5% against the dollar since its May meeting – and that may provide buyers with some relative comfort that the central bank doesn’t see it as being a pressing issue yet.
Back to the AUD/USD chart, the 0.6800 level is offering some daily resistance at the moment as the risk mood is keeping more tepid to start the day but technically there is little stopping a move back towards 0.7000 potentially given the recent run.
A lot will come down to headline risks and how stocks perform, but so far there hasn’t been any major hiccup with US-China tensions from last week being brushed aside for now.