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AUD/USD holds key support after uneventful RBA

FXStreet (Bali) - AUD/USD has barely reacted to a neutral RBA monetary policy statement, in which, as widely expected, the Central Bank made no changes neither in rates - still at record low of 2.5% - nor tone of the accompanying statement, noting that the most prudent course of action for now is to hold fire.

The RBA tone towards the AUD was barely changed from recent months, stating "the AUD remains above most estimates of its fundamental value.” Sean Lee, Founder at FXWW, notes that "this has been one of the quieter reactions to the RBA decision in recent months" adding that "I still think .9270 is an important level, after it failed to break last week despite bearish news."

Technically, as Sean notes above, it is key for the Aussie not to be paid below USD 0.9270, otherwise, bears could see the break as an important bearish development that may potentially expose 0.9230-40 support ahead of 0.92 round number (edge of the multi-month range).

RBA keeps policy steady, AUD above fundamental value

As per broad market consensus, the RBA, at its policy meeting today, decided to leave the cash rate unchanged at 2.5 per cent, keeping the tone on its monetary policy statement firmly neutral.
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