AUD/USD recovers from RBA-led tepid fall, jumps to session high

Having posted a session low at 0.7487 after RBA announcement, the AUD/USD pair has managed to erase all of its early losses and move back into positive territory to currently trade at session high level at 0.7550, up 0.10% for the day.

During early Asian session, the pair witnessed some selling pressure after the release of weaker-than-expected building approvals and trade balance data from Australia. Australian monthly trade deficit for June increased to 3.20 billion as compared to 2.42 billion in May and expected 2.00 billion. Meanwhile, building approvals fell further during the month of June, reporting a decline of 2.9% vs. expected growth of 0.9% and a sharp drop of 5.2% recorded in May.

The selling pressure got further aggravated following RBA's decision to lower its benchmark interest-rates by 25 bps to a record low of 1.5%. The decision was widely expected by market participants and to some extend, was also priced-in the AUD/USD pair. Hence, after an initial reaction, the pair managed to bounce-off strongly from 100-day SMA support.

Focus now shifts to the Federal Reserve's preferred inflation gauge, Core PCE Price Index, slated for release later during NA trading session.

Technical levels to watch

On the upside, immediate resistance is pegged at 0.7615 (multi-week high), above which the pair seems all set to rise to 0.7676 (July 15 high). Meanwhile on the downside, 0.7500 handle now becomes immediate support, which if broken could drag the pair back towards 0.7489-87 strong support (100-day SMA and daily low).