AUD/USD steadies around 0.7240 as RBA is in focus, Aussie Trade Balance improves

• AUD/USD juggles in a 0.7227-0.7265 range ahead of the RBA monetary policy statement.
• An outperformance in Trade Balance by the Australian administration has supported the antipodean.
• Fed’s expected aggressiveness has underpinned the risk-on impulse.

The AUD/USD pair is oscillating in a narrow range of 0.7227-0.7265 as aussie bulls lose momentum but the upside is still intact. A sheer upside move has been recorded in the asset after the Federal Reserve (Fed) unveiled its monetary policy on Wednesday.

The announcement of 50 basis points (bps) and sheer balance sheet reduction was on the cards and the Fed stood on its expectations. But what delighted the Fx domain is fading odds of a 75 bps interest rate hike in the remaining year. Fed chair Jerome Powell denied the possibility of a three-fourth a percent rate hike but warns of more 50 bps rate hikes going forward. The safeguard from ultra-aggressive hawkish tone has underpinned the risk-perceived currencies.

Meanwhile, the antipodean geared up strongly after an unexpected rate hike by the Reserve Bank of Australia (RBA) on Tuesday. RBA Governor Philip Lowe elevated its interest rate by 35 basis points (bps) to combat the galloping inflation. Now, investors are focusing on the monetary policy statement by the RBA, which is due on Friday. The will provide the strategic plan of the RBA policymakers behind the unexpected rate hike decision. Apart from that, the positive Trade Balance has also supported aussie. The Australian Bureau of Statistics has reported the monthly Trade Balance at 9314M higher than the forecast of 8500M and the prior print of 7457M.