FxWirePro: AUD/USD largely unchanged after RBA rate decision, break above 4H 200 SMA to see further gains

AUD/USD chart - Trading View 

The Reserve Bank of Australia (RBA) announced a 25 basis points (bps) cut to its benchmark cash rate as widely expected.

The rate cut was fully priced in and the Aussie remained bid after the rate cut decision.

AUD/USD hit fresh 3-week high at 0.6992 before paring some gains to trade at 0.6976 at 04:50 GMT.

Upside was capped at 4H 200-SMA at 0.6983. Decisive break above to see gains till 0.7127 (200-DMA).

Technical studies are bullish. RSI is above 50 and Stochs are biased higher. MACD shows a bullish crossover on signal line.

Focus now on US factory orders for April and comments from the Federal Reserve Chairman Jerome Powell for fresh direction. 

U.S. factory orders may contract to -0.9% from +1.9% earlier whereas comments by the Fed’s Powell will grab the spotlight amid latest talks of the Fed rate cut.

21-EMA is strong support at 0.6949. Break below will see weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.