BUZZ-COMMENT-AUD/USD risks remain tilted to the upside after RBA cuts

Feb 18 (Reuters) - AUD/USD traded slightly lower Tuesday after the RBA cut rates for the first time in 5-years, but the pair's resiliency suggests investors could be focused more on upside risks.

Investors deemed the RBA's policy change as a hawkish cut as the central bank was cautious on the prospects for future policy easing. The RBA's Statement on Monetary Policy stated inflation is expected to slow but remain above the 2.5% rate assumed in the November forecast and that the labor market will remain tight.

Australian bond yields AU3YT=RR rallied sharply on the report and decreased the U.S. dollar's yield advantage over the Australian dollar which helped buoy AUD/USD.

Investors may also see commodity gains as an upside risk for AUD/USD.

Iron-ore DCIOc2 is hovering just below its recent 7-month high, while copper HGv1 is consolidating gains off the January monthly low, and gold XAU= is just below its all-time high.

Technicals highlight upside potential for AUD/USD, and may be influencing investors.

AUD/USD's hold above its 10-, 21- and 55-day moving averages as well as the daily cloud base are encouraging signs for AUD/USD bulls.

February's monthly bullish engulfing candle and rising RSI add to positive signals. The monthly RSI diverged on the 5-year low struck February 3rd, which reinforces bullish technicals as does the failure to hold below the 76.4% Fibo of the 0.5510-0.8007 rally.

Therefore, a rally above the 200-DMA and toward 0.6675/0.6700 cannot be ruled out.

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