Aussie dollar loses ground as RBA stays pat for the third month

Australian dollar was sharply lower on Tuesday (down nearly 1.3% in Asian / European session), after the Reserve Bank of Australia kept interest rates unchanged at 4.1% for the third consecutive month.

The RBA argued its decision by brighter outlook for pushing the inflation towards the central bank’s target, as they have a firmer grip on prices which adding to speculations that tightening cycle was over.

Aussie dollar was sold in immediate reaction and hit three-week low, pressuring key near-term support at 0.6364 (2023 low, posted on Aug 17).

Fresh bears look for eventual close below cracked Fibo support at 0.6403 (76.4% retracement of 0.6170/0.7157) after three consecutive attacks failed here.

Technical picture on daily chart is firmly bearish, with close below 0.6403 and break of recent spike low at 0.6364, to add to bearish signal and unmask 0.6170 target.

Res: 0.6403; 0.6445; 0.6488; 0.6521
Sup: 0.6364; 0.6304; 0.6267; 0.6244