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Chart - Courtesy Trading View
AUD/USD was trading 0.09% higher on the day at 0.6520 at around 06:40 GMT.
The major has erased RBA-led losses and has edged higher as market sentiment improves.
Earlier in the day, Australian dollar fell after the Reserve Bank of Australia's (RBA) decision to slow the pace of policy tightening.
The RBA raised interest rates by 25 bps to 2.60% against market expectations for a 50 bps rate hike.
In the monetary policy statement, the central bank said that it expects to keep raising interest rates this year as inflation is trending well above the target range.
Risk-on impulse contributes to modest USD weakness, supporting the pair higher. Technical indicators show some upside on the intraday charts.
Price action has edged above 200H MA. 5-DMA has turned and the pair is on track to test 21-EMA at 0.6619.
