RBA kept rates unchanged
The RBA kept rates unchanged as per expectations. The reaction to the statement helped to send the price modestly to the upside. The central bank did say that they would buy 3 year notes to push the yield down a bit (little bit of yield curve control).
On the moved to the upside, the pair was able to extend back above its 200 hour moving average at 0.71413 (green line), but could not make it to and through the 100 hour moving average at 0.71529. So sellers were leaning in that area (with stops likely above). The last 3 hours has seen the price move back below its 200 hour moving average (and stay below). The moving average remains a risk level for shorts. Stay below keeps the bears in control.
On the downside, the next target comes in at the 38.2% retracement at 0.71097. The low for the day in the Asian session dipped just below that level to 0.71053 before starting the choppy move to the upside. A move back below the retracement level will open the door for the 50% retracement at 0.70736. Recall from yesterday the price decline stalled just ahead of that level at 0.70758.
