AUD/USD turns positive after the RBA rate decision

• RBA kept rates unchanged and retained the neutral stance, leaving those expecting a dovish shift disappointed.
• AUD/USD is showing signs of life after the RBA rate decision.

The Aussie dollar has recovered from the session lows as the Reserve Bank of Australia's (RBA) retained the neutral stance, contradicting expectations of a dovish shift.

A few experts were anticipating a dovish change after a surprise hike in borrowing costs for Australian mortgage holders. However, the central bank dismissed it by stating that the average mortgage rate paid is lower than a year ago, despite an increase in mortgage rates by some lenders.

So, it is safe to say that the RBA still expects the next move in the rates to be on the higher side, although the lift-off is unlikely to happen anytime soon.

At press time, the AUD/USD is representing marginal gains on the day at 0.7216, having hit a low of 0.7187 earlier today. The currency pair could rise even further if the risk assets remain well bid during the day ahead.

AUD/USD Technical Levels

Resistance: 0.7238 (Aug. 24 low), 0.7280 (10-day moving average), 0.73 (psychological hurdle)

Support: 0.7166 (recent low), 0.7145 (May 32016 low), 0.71 (psychological level)