FxWirePro: AUD/USD pauses upside at 21-EMA, cautiously optimistic RBA has little impact

AUD/USD chart - Trading View 

AUD/USD was trading 0.28% lower on the day at 0.7263 at around 04:45 GMT, pausing 3 days on upside.

The Reserve Bank of Australia (RBA) matches wide market expectations of keeping the benchmark rate, bond purchases intact.

In its monetary policy announcement on early Tuesday, the RBA held the benchmark interest rate unchanged at 0.10%, also keeping the weekly bond purchase at $4.00 billion.

The policy statement that followed raised doubts over the Aussie economic expansion due to the pandemic-led local lockdowns.

Earlier in the day, Australia's trade surplus unexpectedly grew to a record in August as strength in liquefied natural gas and coal exports more than offset a pullback in iron ore prices,

Data from the Australian Bureau of Statistics showed international trade jumped to A$15.1 billion ($11.0 billion) in August, from A$12.7 billion the month before, beating analysts' forecasts of a drop to A$10.3 billion.

Exports climbed 4.1% in the month to A$48.5 billion, while imports fell 1.5% in August to A$33.4 billion. Australian goods exports to China alone stood at A$18.6 billion in August, up 55% on a year earlier.

Market sentiment remained sour amid China woes, anxiety over US stimulus and debt ceiling extension.  

AUD/USD remains depressed amid sluggish market mood. Additionally, a jump in Australia’s total covid infections weighs on the Aussie.

Focus now on the US ISM Manufacturing PMI and final reading of Markit PMI for September for further direction.

Technical bias for the pair is neutral, decisive breakout above 21-EMA could change near-term dynamics.