AUD/USD unmoved despite RBA’s downward revision of June 2017 GDP forecast

AUD/USD remains largely unchanged around 0.7620 even though the RBA cut June 2017 forecast to 1.5%-2.5%. 

The central bank held long-run GDP forecasts unchanged and sounded upbeat on wage growth and inflation. However, the bank does not see the recent jump in terms of trade, commodity prices to last more than two years. 

Overall, the policy statement could be described as ‘glass half full, half empty’. Thus, there is little motivation for a big move in the AUD. 

The upside in the pair was capped earlier today around 0.7630 as Trump’s promise to deliver on tax front in a few weeks pushed the treasury yields higher. 

AUD/USD Technical Levels

A break above 0.7362 (76.4% of Trump sell-off) would expose 0.7664 (previous day’s high) and 0.77 (zero figure). On the downside, a breach of 0.7610 (previous session’s low) could yield a much deeper retracement to 0.7578 (Feb 2 low) and to 0.7542 (Jan 31 low).