Market Overview

RBA kept the policy unchanged but sounds upbeat

The Reserve Bank of Australia kept the interest rate and the target yield on three-year government bonds unchanged, postponing a decision on QE until early June.

For the most part, the commentary was optimistic, noting stronger than expected growth that is forecast to continue while the labour market is actively creating jobs and property prices are rising in all markets of the country.

The Australian dollar lost 20 pips after the RBA’s comments. But it looked like a “sell the facts” dynamic. For more than a month and a half, AUDUSD is getting support on the declines towards the 50-day MA, which we saw earlier today.

However, it’s likely that the stomping around 0.7750 is not a loss of growth momentum but a consolidation after a rally from the lows of 2020. In case of a new growth wave, the bulls see a new target at 0.81, from where the pair has repeatedly reversed to the downside since 2015.

The FxPro Analyst Team

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