FxWirePro: AUD/USD edges higher from session lows, RBA's status quo puts a floor under the Aussie dollar

AUD/USD chart - Trading View 

AUD/USD was trading 0.15% lower on the day at 0.7758 at around 04:45 GMT, erases early losses after RBA policy meeting.

The Reserve Bank of Australia's status quo rate decision has put a floor under the Aussie dollar, lifting the pair from session lows at 0.7737.

The central bank left the benchmark interest rate unchanged at a record low of 0.10% at its March monetary policy meeting, as widely expected.

The RBA retained the three-year bond yield target at 0.1%. The central bank earlier this week signaled its determination to drive yields lower with massive bond purchases.

In the monetary policy statement that followed, the RBA said it remains committed to maintaining highly supportive monetary conditions until its goals are achieved.

It noted that the economy is still operating with considerable spare capacity and hence tight labour market conditions and high wages growth are unlikely until 2024 at the earliest.

AUD/USD has erased early losses, but upside is capped below stiff resistance at 21-EMA. Decisive break above will see further gains.

Technical studies are neutral and do not provide a clear directional bias. Weakness only on breach below daily cloud. On the flipside, breakout above 21-EMA could see upside resumption.