No lasting reaction in AUD/USD post-RBA,.....>

AUSSIE: No lasting reaction in AUD/USD post-RBA, with limited to no initial

reaction, as the Bank left rates unchanged as was universally expected.

- The decision saw the Bank modestly upgrade its GDP growth forecast for '18 &

'19, while it trimmed its longer run unemp. projection to 4.75% following the

latest labour mkt report.

- The fact that the first and final paragraphs in the statement remained

unchanged seems to be key, the uptick in GDP estimates & lower unemployment

forecast are seemingly negated by the CPI/wage outlook, with inflation to "be a

bit higher" than 2.25% in 2020 (the most recent SoMP had it earmarked at 2.25%,

could be deemed hawkish but the fact that it refers to a "bit" above shows any

tweaks in Friday's SoMP are likely to be limited), wage growth still seen as

gradual. No notable language tweaks re: housing market/external risks.

- AUD/USD $0.7218 last, Bulls target a break of $0.7259, before focusing on the

100-DMA & 23.6% of the 2018 range at $0.7269/84 to extend gains. Bears need to

break back below the 50-DMA at $0.7163 to test broken down trendline

resistance-turned-support from the Feb highs.