AUD/USD falls from a high of 0.7468 on the RBA decision to 0.7432
The pair is trading back to the lows for the day now as price action settles into the pre-RBA range territory once again. As mentioned earlier, the optics of the situation is what arguably gave a boost to the aussie but the key takeaway was that:
Essentially, today's decision avoids the look that they are sitting on their hands but it also seemingly looks like they are firm with their policy stance set out to taper.But when you take a step back and review, does it really amount to much? I'm not sure. If anything else, I'd argue that this is perhaps a more 'indecisive' take by the RBA.The aussie may have jumped on the initial reaction but I think traders are getting a little too ahead based on the optics of the entire decision.If you look more closely, this is the RBA still signaling that it isn't changing its overall policy stance and shifting towards a more bullish outlook any time soon.
To sum up, I'd say this isn't quite a departure towards a more dovish outlook but it certainly is a signal that "things are not going to plan" by the RBA at least.
That may perhaps keep a lid on the aussie's good run of form since last week but essentially we're caught in the technical conundrum pointed out earlier here.