FxWirePro: AUD/USD struggles to extend gains above 0.72 handle, RBA's status-quo fails to inspire Aussie bulls

AUD/USD chart - Trading View 

AUD/USD has pared some of its early gains and was trading at 0.7191 at around 04:30 GMT.

The major was seen struggling to extend gains above 0.72 handle, Aussie bulls largely unimpressed by RBA's status-quo.

The Reserve Bank of Australia left key rates unchanged but kept doors open for more easing to support the 'uneven' and 'bumpy' economic recovery. 

The central bank targeted yield on 3-year bonds unchanged at 0.25% during the latest announcement.

Focus now on the Australia's budget for possible spending plans and tax cuts to boost the economy.

Also in focus will be Fed Chairman Jerome Powell's speech about the US economic outlook at the National Association of Business Economics annual meeting.

US President Trump’s recovery moves will be closely followed for near-term market performance.

The pair continues to trade with a neutral bias, finds stiff resistance till 0.7243 (200W MA).

Break out at 200W MA will confirm further gains. Scope then for test of 78.6% Fib at 0.7573.

On the flipside, 55-EMA is immediate support at 0.7148. Retrace below will see dip till 110-EMA at 0.7025.

Major Support Levels - 0.7148 (55-EMA), 0.7070 (20W MA), 0.7025 (110-EMA)

Major Resistance Levels - 0.72, 0.7243 (200W MA), 0.73