AUD/USD drops to nearly 3-week lows after RBA announcement

The AUD/USD pair finally seems to have broken out of its consolidative range held through early Asian session and refreshed session lows following the RBA announcement.

Currently trading around 0.7580 region, spot ran through some fresh offers after the Australian central bank, on expected lines, maintained status quo and left its key benchmark interest rate unchanged at 1.50%. 

The accompanying statement, however, raise concerned over medium-term economic risks for the Chinese economy. Being Australia's largest trading partner, concerns over Chinese economic growth tends to weigh on China-proxy Australian Dollar, which eventually attracted some selling pressure around the major.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, "The falling top formation established on March 20 followed by a breach of the rising trend line on Monday coupled with the bearish turn in the MACD and the RSI suggests the pair is likely to drift lower to 0.7524 (38.2% fib retracement of 0.7160-0.7749 + lower Bollinger band). Only a daily close above the rising trend line would abort the bearish move, while a sustained rally is seen following a weekly close above 0.77 handle."