The Aussie holds bid tone at the beginning of European session after jumping to session high at 0.7985 on mixed Australian data.
Australian current account deficit widened to 9.6 billion A$ in the second quarter, while net export contribution rose by 0.3% in Q2 vs forecast of -0.1% and -0.7% in Q1.
RBA rate decision was the top release in Asian session. Australian central bank kept interest rates unchanged at 1.5%, as expected but following statement was generally unchanged, despite expectations for some tightening signals and signs of improving economic outlook.
However, RBA repeated concerns that higher AUD continues to weigh on economic growth and inflation.
The AUD was sold off after the RBA, additionally pressured by sales of AUDJPY cross, but dips were contained by rising 10SMA at 0.7940 and subsequent bounce kept near-term bullish bias intact.
Near-term action is looking for renewed attack at key 0.8000 resistance zone, where upside attempts failed twice until now, with sustained break here needed to generate bullish signal for eventual attempt towards 0.8065 (27 July high, the highest since early May 2015).
Near-term action is supported by thick hourly cloud (spanned between 0.7958 and 0.7932) and only break lower would risk further weakness and test of key near-term supports at 0.7914 (20SMA) and 0.7896 (daily cloud top).
Res: 0.7995, 0.8010, 0.8042, 0.8065
Sup: 0.7940, 0.7932, 0.7914, 0.7896
