Chart: WorldWideMarkets Alpha Trader
The Australian Dollar rose sharply by 110 pips to 0.7710 from 0.7600 following the RBA announcement where the monetary board decided to leave the official cash rate unchanged at 2.25% contrary to the widely expected cut of 25 basis points.
RBA statement: "It was appropriate to hold interest rates steady for the time being. Further easing of policy may be approprate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target. The board will continue to assess the case for such action at forthcoming meetings."
The 14-day moving average rallied to meet resistance at 0.7700 from 0.7605 easing on a 20% correction to 0.7665. The profit taking correction was also fueled by the firm US dollar.