AUD/USD: no response to the status quo RBA policy

• The Aussie dollar is seeing little action after the RBA kept interest rates unchanged as expected.
• The technical bias remains bullish after an upside break of the key falling trendline.
• Focus on the Us midterm elections, Democrat victory in both houses is seen hurting the US dollar.

The AUD/USD barely moved after the Reserve Bank of Australia (RBA) held interest rates unchanged at 1.5 percent for the 26th straight month.

Despite the dismal third quarter inflation reading, the central bank maintained the central scenario of inflation at 2.25 percent in 2019 and bit higher in 2020. Further, the central bank revised higher the 2018 and 2019 GDP forecasts but reiterated that wage growth remains subdued and pointed to a slowdown in the housing markets in Sydney and Melbourne.

All-in-all, the policy statement offered little surprises, leaving the pair largely unchanged on the day at 0.7210.

On the technical charts, the currency pair is looking north, having scaled the nine-month-long trendline last week. The upside will likely gather momentum if the US midterm elections end up with a Democrat majority in both houses.

AUD/USD Technical Levels