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The AUD/USD pair held on to the post-RBA gains and is currently placed near the top end of its daily trading range, around the 0.6725 region.
Following an early dip to over four-month lows, the pair turned higher and added to the previous session's modest gains after the Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged at a record low level of 0.75%.
The decision was on expected lines but the fact that the Australian central bank took note of signs of a turnaround in the housing market and said that the consumption growth is expected to pick up gradually provided a goodish lift.
This comes on the back of China's measures to cushion the economic impact from the outbreak of the deadly coronavirus underpinned the China-proxy Australian dollar and prompted some follow-through short-covering move on Tuesday.
Adding to this, a subsequent recovery in the global risk sentiment remained supportive of the bid tone surrounding perceived riskier currencies, including the aussie, albeit a stronger US dollar might keep a lid on any strong gains.
The greenback remained well supported the risk-on mood-led goodish bounce in the US Treasury bond yields and Monday's stronger-than-expected US ISM Manufacturing PMI, which unexpectedly moved back in the expansion territory in January.
