AUD/USD chart - Trading View
AUD/USD erased initial RBA-led gains and was trading 0.39% lower on the day at 0.7410 at around 06:30 GMT.
The Reserve Bank of Australia (RBA) kept the benchmark interest rate at 0.1% in line with the market consensus.
In its rate statement, the central bank said to purchase government securities at rate of Australian dollar (AUD) 4.0 billion a week until at least mid February 2022.
The Aussie pair initially jumped over 30 pips after the central bank surprised markets with bond tapering plans.
However, souring risk appetite and US dollar rebound from the day’s low along with firmer Treasury yields drag the pair lower.
The statement that followed showed the central bank's commitment to maintain highly supportive monetary conditions reflect potential delay in recovery and uncertainty of Delta outbreak.
Intraday bias for the pair has turned bearish as price action plunges below 200H MA. Long-term uptrend has paused at 110-EMA resistance.
Price action hovers around 5-DMA, decisive break below will see more weakness. Upside continuation only above 110-EMA.
