AUD/USD needs to hold above 0.76 to pave the way toward 0.77 and 0.78 – OCBC

The Australian dollar outperformed on the Reserve Bank of Australia (RBA) decision but gains in the AUD/USD were eventually pared to sub-0.76 levels. Economists at OCBC Bank expect the pair to consolidate around the 0.76 handle.

Hawkish tilt seen in the RBA's forward guidance

“The RBA did not signal that a rate hike is imminent, but rhetorical changes in the statement was sufficient for the market to believe that the RBA has finally succumbed to the hawkish expectations.”

“Look for consolidation around the 0.76 handle for now.” 

“Ability to hold above 0.76 could pave the way toward 0.77 and 0.78 in the multi-week horizon.”