Chart - Courtesy Trading View
AUD/USD was trading unchanged at 0.7191 at around 07:40 GMT, down from session highs at 0.7247.
The major has erased hawkish RBA-led gains and has retraced below 0.72 handle, down from session highs at 0.7247.
The Australian dollar rallied across the board in reaction to the RBA’s latest rate surprise during early Tuesday morning.
The Reserve Bank of Australia (RBA) crossed wide market expectations with a 50 basis points (bps) hike to 0.85%.
The Statement that followed, however, was less hawkish and probed the quote after the initial knee-jerk reaction to the RBA’s rate hike.
The major is extending weakness for the 3rd straight session, upside remains capped at 200-DMA.
'Death Cross' and overbought oscillators add to the potential for more weakness. 55-EMA is immediate support at 0.7180. Breach below will see more downside.
