AUD/USD struggles around 0.7400 amid dovish RBA Monetary Policy Statement, NFP eyed

• AUD/USD keeps range around 0.7400 on dovish RBA’s policy statement.
• The US dollar holds onto recent gains amid a cautious mood, firmer yields.
• Focus shifts to the US NFP release due Friday for fresh trading impetus.

After witnessing heavy losses on Thursday, AUD/USD has entered a bearish consolidation phase around 0.7400, as investors digest the latest Monetary Policy Statement from the Reserve Bank of Australia (RBA).

The RBA statement revealed that the central bank “will not raise the cash rate until these criteria are met and are prepared to be patient.” The RBA added that “inflation to be between 2 and 3% on a sustainable basis.”

The aussie came under fresh selling pressure and hit fresh session lows at 0.7392 on the dovish statement release. Meanwhile, the cautious market mood ahead of the critical US NFP release also weighs down on the riskier currency, the AUD.

Meanwhile, the US dollar is consolidating the solid comeback while trading close to the three-week highs of 94.47 vs. its main competitors. The dollar rebound was mainly driven by the markets still pricing in of a mid-2022 Fed rate hike, despite the dovish take by Chair Jerome Powell on Wednesday.

Further, the post-Bank of England (BOE) decision sell-off in GBP/USD collaborated with the greenback’s recovery rally, exerting additional downward pressure on the aussie pair.

Looking ahead, the pair could likely continue its consolidative mode, with investors awaiting the NFP data for fresh directives.

AUD/USD: Technical levels to watch out