AUD/USD swings higher to 100-DMA on RBA minutes

The AUD/USD pair ran through fresh bids and jumped back above 0.73 barrier following the release of RBA’s May 3 policy meeting, when the central bank slashed rates to a new record low of 1.75%.

AUD/USD jumps-off lows near 5-DMA

Currently, the AUD/USD pair jumps +0.81% to fresh 3-day highs of 0.7348, having taken-out Thursday’s high at 0.7330. The Aussie finally broke the overnight
consolidative phase to the upside and rallied beyond 0.73 handle as the RBA minutes failed to provide any new dovish surprise, which markets were anticipating and hence, fuelled a 60-pips rally in the AUD?US pair.

Moreover, the minutes document revealed that the RBA board members discussed leaving rates on-hold, which came as a hawkish surprise, despite the central bank jawboning the AUD, citing that a stronger AUD could complicate economic adjustments.

As Reuters reports, citing the RBA minutes report, "members discussed leaving interest rates on hold at the May 3 meeting but decided on balance that a cut then would help return inflation to target over time."

Meanwhile, markets will continue to digest the minutes amid a better risk-environment backed by higher global equities and the recent rally in the oil prices to fresh multi-month tops. Later today, focus will remain on a fresh batch of US economic data, with the CPI figures closely eyed.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7379 (May 12 High) above which gains could be extended to the next hurdle located at 0.7400 (round number). On the flip side, the immediate support located at 0.7288 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7262 (200-DMA).