AUD/USD continues to hug the 200-hour moving average

AUD/USD H1 05-05

The pair tracked lower in trading yesterday before finding support from the 61.8 retracement level @ 0.6374 amid the turnaround in the risk mood during US trading.

Price has steadily climbed higher since and is now testing the 200-hour MA (blue line) with the RBA decision doing little to shift the dial in trading sentiment on the day.

Arguably the most notable change from the decision today is that the RBA announced that they will broaden their minimum criteria for purchases of corporate debt securities to involve BBB- credit ratings; previously AAA, A-3, and A-1.

Their forecast of the economy remains subdued but they aren't going to overextend on QE just yet. So, there isn't much else to really gather from the decision earlier.

The aussie is trading little changed against the dollar around 0.6440 currently as sellers are still somewhat leaning on the 200-hour MA to limit gains. Further resistance is seen from the 100-hour MA (red line) @ 0.6474 if the pair does track higher later in the day.

Meanwhile, sellers have work to do in driving price back below 0.6400 and the 61.8 retracement level @ 0.6374. For now, the risk mood is slightly more favourable and that is helping buyers as we see US futures up by 0.7% ahead of European morning trade.