The Australian dollar is the top performer in the major currencies space today, boosted by a surprise rate hike by the RBA earlier here.
That helped to see AUD/USD jump up from 0.6630 to 0.6700 now, where gains are somewhat consolidating. There are large option expiries in play at the current levels and the 200-day moving average (blue line) at 0.6732 will also act as a key resistance point in terms of limiting the upside spike for now.
As seen in the chart above, the key daily moving averages have been a vital point of resistance that sellers have leaned on since March trading. Thus, if buyers are chasing for any real upside momentum stemming from the RBA surprise, they will have to break through that first and foremost.
However, I don't see the RBA surprise alone as being enough to start a trend reversal for AUD/USD back to the upside i.e. towards 0.7000. Instead, it will take a rather dovish Fed tomorrow to really spark such a potential move for the pair. Otherwise, we could see sellers start to make a stand again at the key levels highlighted above.
