AUD/USD: Ascent capped by 10-DMA as RBA is no hurry to hike rates

• AUD/USD remains bid, but upside capped around the 10-day moving average (MA). 
• RBA SoMP showed the central bank sees no strong case for a near-term move in the interest rates. 

The AUD/USD is having a tough time scaling the descending (bearish) 10-day MA located at 0.7549 as the Reserve Bank of Australia (RBA) Statement of Monetary Policy (SoMP) showed the central bank is unlikely to hike rates in the near-term. 

Key points

Higher rates are likely to be appropriate at some point.

Lifts 2018 core inflation forecast to 2% from 1.75%.

GDP growth forecast of 3.25% by December 2018, 2019.

GDP growth forecast of 3% by mid-2020.

If the economy improves as expected, higher rates are appropriate.

AUD/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet, “the 4 hours chart shows that the pair is trying to settle above a bearish 20 SMA, while the Momentum indicator entered the positive territory and the RSI advances around the 52 level, favoring additional recoveries in the case of an extension above the mentioned Fibonacci resistance. Support levels: 0.7470 0.7430 0.7400. Resistance levels: 0.7530 0.7550 0.7590.”