The Reserve Bank of Australia left the interest rate unchanged at 2.25%, refraining from a second consecutive cut.
This surprising move (well, it seems that some knew about the move seconds before)  sent AUD/USD shooting up above 0.78. Is this a definitive comeback or a sell opportunity?
The RBA said that it is appropriate to hold rates steady for the time. This comes despite seeing growth continuing below trend pace and weak growth in domestic demand. Subdue labor cost growth is set to keep overall inflation in target.
However, it did say that it will assess the case for easing at the forthcoming meetings.
What about the Australian dollar? It said a further fall in the exchange rate is needed to balance growth.
All in all: the RBA held now but may cut later.
Earlier, data released from Australia came out better than expected: building approvals jump 7.9% against a drop of 1.8% expected. The current account deficit squeezes to 9.6 billion from 12.1 billion and 10.9 billion expected. And, the average cash earnings rose by 1.3% instead of 0.6% predicted.
More:Â Australian Dollar: Up, Down or Indecision?
Here is how the jump looks on the AUD/USD 30 minute chart:
