AUD/USD takes a breather above 0.8900

AUDUSDThe AUD/USD steadied just below recent highs and has spent the last hours sideways around 0.8900 as it takes a breather from the steep rally triggered by RBA policy turn.

The AUD/USD rose more than 150 pips and reached a 3-week high of 0.8913 after the RBA dropped its easing bias and refrained from commenting about a currency that remains uncomfortably high. The AUD/USD has entered a consolidation phase and it was last around 0.8905, recording a 1.8% gain on the day.

AUD/USD levels to watch

In terms of technical levels, if the AUD/USD breaks decisively above 0.8913 (Feb 4 high), next resistances could be found at 0.8930 (50-day SMA) and 0.8970 (Jan 15 high). On the other hand, supports could be faced at 0.8800 (psychological level) and 0.8730 (Feb 4 low).