FxWirePro: AUD/USD erases losses after RBA's relatively upbeat outlook on the labor market

AUD/USD chart on Trading View used for analysis

• AUD/USD erased losses and turned positive post RBA policy rate decision.
   
• The pare edged higher from session lows at 0.7193 and is currently trading at 0.7247 at 0350 GMT.
   
• The Reserve Bank of Australia (RBA) left rates unchanged as widely expected and lowered the growth outlook to 3 % for 2019.
   
• However, the central bank sounded relatively upbeat about the labor market.
   
• RBA essentially banks on the sustained labor market tightening to push inflation higher, the wording refrained from reinforcing markets' belief that a rate cut could be in the offing by the end of 2019. 
   
• AUD/USD is in a major bear trend and rallies have been capped at 200-DMA which is stiff resistance currently at 0.7292.
   
• Breakout above 200-DMA is required for a sustained move higher. Scope then for test of 50% Fib at 0.7440.
   
• 21-EMA is immediate support at 0.7186. Break below will see further weakness.

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