The AUD/USD has fallen 60 pips on the heels of news that the Reserve Bank of Australia (RBA) has raised interest rates by 25 basis points.s compared to the 50 expected. The pair has tumbled to daily lows at 0.6450, and remains bearish on the day.
In its meeting today, the Board of the Reserve Bank of Australia has decided to increase its interest rates by 25 basis points, from 2.35% to 2.60%, lower than expected, since the markets estimated an increase at 2.85%. This is the sixth consecutive meeting with rate increases and the highest level reached since mid-2013.
In his monetary policy statement, the RBA has confirmed that it expects to continue raising interest rates in the future. The size and timing of future interest rate hikes will continue to be determined by data and the Council’s assessment of the outlook for inflation and the labor market. The entity has been firmly committed to returning inflation to the 2-3% target.
AUD/USD Levels
At time of writing, and as traders digest the news, AUD/USD is trading above 0.6460, shedding 0.84% ​​on the day. In case of larger falls, the initial support is at 0.6391minimum of September 30, prior to 0.6363. bottom of September 28 and lowest level since April 2020.
On the upside, the first resistance awaits in the area 0.6530, maximum of September 28. You need to break above that level to target 0.6670September 22 ceiling, and 0.6770highest level on September 15.
Source: Fx Street
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