The AUD/USD is in a tight range today after the Reserve Bank of Australia (RBA) delivered its interest rate decision. The pair is trading at 0.7627, which is substantially lower than the year-to-date high of 0.7825.
What happened: In its first rate decision of the year, the RBA decided to leave interest rate unchanged as most analysts were expecting. To provide more support to the economy, the bank also decided to increase its quantitative easing program by another A$100 billion ($76 billion). The purchases will be in A$5 billion installments every month.
The decision came at a time when the Australian government is starting to pause on its stimulus package. In a statement this week, Prime Minister Morrison said that he will focus on improving the fiscal situation in the country. Also, the RBA decision came a day after the country released strong manufacturing PMI data.
On the four-hour chart, we see that the AUD/USD price has formed an important descending channel recently. The support of this channel is at 0.7658 while the resistance is at 0.7763. The pair managed to move below this support last week but it has struggled to go down further. Therefore, in my view, there is a possibility that the pair will resume the downward trend with bears targeting the next support at 0.7582.
