AUD/USD ticks higher as RBA said terms of trade have been stronger than earlier expected

• The RBA kept interest rates unchanged as expected, but upgraded language on terms of trade.
• The AUD/USD is now reporting marginal gains, having recovered from the session lows after the RBA rate decision.

The AUD/USD jumped 16 pips to a session high of 0.7365 after the Reserve Bank of Australia (RBA) kept interest rates unchanged at a record low of 1.5 percent, as expected, but upgraded the language on international trade.

The central bank said the terms of trade have been stronger than earlier expected, meaning the international trade would be a lesser drag on the GDP than previously anticipated.

The gains, however, could be capped by RBA's cautious tone on household income, high debt levels and wage growth. Notably, the central bank cited household consumption as a continued source of uncertainty.

All-in-all, the policy statement does little to alter expectations of the interest rate lift off in 2020.

AUD/USD Technical Levels