• AUD/USD jumped higher on Tuesday after Australia's central bank held its cash rate steady at 3.85% on Tuesday, surprising markets that had widely anticipated a rate cut.
• The Reserve Bank of Australia concluded its two-day meeting by keeping the cash rate steady at 3.85%, defying expectations of a cut to 3.60%..
• In a rare split decision, the monetary policy board voted six to three in favor of holding rates steady, citing the need for more inflation data before making further moves.
• Markets had priced in an 85% chance that the RBA would cut rates to 3.60% at its Aug. 12 meeting, and now expect the rate to bottom out at 3.10% instead of the earlier forecast of 2.85%.
•At GMT 05:73, the Australian dollar was trading up 0.73% at 0.6538 against greenback .
• Immediate resistance is located at 0.6593(23.6%fib), any close above will push the pair towards 0.6621(Higher BB).
• Support is seen at 0.6487(38.2%fib) and break below could take the pair towards 0.6403(50%fib).
Recommendation: Good to buy around 0.6510 with stop loss of 0.6440 and target price of 0.6600
