AUD/USD clings to gains as RBA offers no policy change

• AUD/USD remains upbeat as the RBA refrains from the policy change.
• The central bank stepped back from suggesting further rate cuts.
• Trade/political news will be followed for fresh impulse.

With the RBA refraining from fresh rate cut clues, the AUD/USD pair remains positive around 0.6780 ahead of the European market open on Tuesday.

The Reserve Bank of Australia (RBA) match broad market consensus while holding its monetary policy unchanged, which offers a 1.0% interest rate. The central bank refrains from supporting further rate cuts while leaving the door open based on future growth conditions. Earlier during the day, upbeat trade balance data for June also pleased Aussie buyers.

Market risk sentiment has been wild since Asian morning as the US-China trade tussle took a step further after the US termed China as a currency manipulator. Further, the dragon nation feared the US testing intermediate missiles and warned to retaliate while also criticizing the Trump administration’s behavior on trade/political issues.

However, trades seem to trim previous gains off-late as China’s offshore Yuan (CNH) recovers some of the previous losses. Moving on, the US JOLTS Job Openings data for June, expected to roll out 7.317M mark versus 7.323M prior, becomes the only catalyst on the economic calendar to watch, which in turn highlights the importance of trade/political news for fresh direction.

It should also be noted that the latest recovery in risk sentiment pulls the 10-year US treasury yields back to the green region while fluctuating around 1.761% by the press time.

Technical Analysis

Unless overcoming June month low of 0.6830, which holds the key to pair’s run-up towards 0.6910, prices weakness in the direction to January month low near 0.6684 can’t be denied.