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AUD/USD: Will buyers take control above 0.71?

FXStreet (Bali) - AUD/USD has seen an algos-led spike in response to the RBA rate decision - no change at 2% -, reaching a high of 0.7120, with some follow through, which is the critical clue, also seen at present.

No surprises in RBA statement

The fact that the RBA monetary policy statement presented no surprises - easing subject to economic conditions and AUD adjusting to commodity falls -, as expected, served as an excude to take prices higher, in line with the recent momentum seen since the big miss in the US NFP.

Up path of least resistance?

The most immediate hurdle, which was located at 0.7110/15 - Monday's high and daily R1 - , has now been broken, with acceptance above the level implying a continuation towards 0.7145/55 - cluster between daily R2 and horizontal level - ahead of 0.7080 - daily R3 + horizontal level. On the downside, as long as 0.71/7110 is maintained, the near term bullish momentum may persist. However, the key area to protect by buyers is still found below at 0.7045/55, now quite a distance away.

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