The Reserve Bank of Australia (RBA) kept its policy rate at 0.10% (vs. 0.10% consensus) today. To me the accompanying statement by Philip Lowe does not sound as hawkish as you would expect with regard to the massive reaction in Aussie. The RBA has not even announced a rate hike in the near future, but wants to wait for the data in the next few weeks. So I think this morning's rally was a technical reaction that is likely to be corrected in the near term as well.
AUDUSD -- 0.7631
The currency pair made it above the the 0.7556 resistance finally. That level should work as support now. If you want to fade the movement of this morning watch your stops carefully. From a technical perspective it makes more sense to wait for a daily close below 0.7550 if you want to short the pair again.
EURAUD -- 1.4379
The same applies to this currency pair. There are no real technical supports to the downside and it is hard to derive a good stop level for longs. Below the former 1.4564/36 support zone (now resistance) the currency pair is in bearish territory and we should accept that. As soon as the Euro has crossed the resistance, one can start thinking about longs again.
AUDJPY -- 93.77
This morning’s rally was impressive as well but the 94 treshold was not in danger so far. In contrast to the currency pairs described above we can at least work with a range (90.76 - 94.32) giving us a resistance and a support mark. As the pair is still trading in overbought territory and at the upper end of the range I would rather look for shorts. Above the multi-year high of 94.32 the short-term short scenario is over for the time being.
Good luck,
Sebbo