AUD/USD: consolidating below the key psychological 0.80 handle

Currently, AUD/USD is trading at 0.7976, down -0.32% on the day, having posted a daily high at 0.8045 and low at 0.7961.

AUD/USD was marginally pressured to the downside after the RBA's announcements that were less bearish for the Aussie than expected. 

RBA resisted temptation to jawbone AUD, kept rates on hold - Westpac

"Instead, the RBA noted that "An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast"," explained analysts at Westpac, who said that this suggests a stronger link between appreciation in the A$ and the RBA's economic forecasts. 

"The A$ is expensive in our eyes, being above the top end of our fair value band. However, given the backdrop of a weak US$, rising commodity prices and strong risk sentiment, an expensive A$ is to be expected," added the analysts explaining that it is not obvious that the guidance will have a significant impact on the A$ near term though it should clearly caution on expectations for further strength.

​​​​​​US: ISM manufacturing offers some support for rate hawks - ING

AUD/USD levels

AUD/USD is losing the foothold above the 200-week ma at 0.8004. "However dips lower should remain well supported by 0.7874/.7836 the April 2016 high.  While above the uptrend at 0.7710 we will assume it is capable of further gains longer term," argued analysts at Commerzbank.  To the upside, the analysts calculate that above 0.8100 targets the 0.8162/66 May 2015 peak and 50% retracement and this is capable of holding the initial test ahead of the 0.8295 January 2015 high.