The AUD/USD has reacted to the announcement of the RBA to keep its interest rates at 0.10% with a spectacular increase of 70 pips that has led it to new nine-month highs at 0.7605. At time of writing, the pair is trading around 0.7597, gaining 0.72% on the day.
At its April meeting on Tuesday, the Reserve Board of the Bank of Australia (RBA) decided to keep the main interest rate at 10 basis points or 0.10% and the interest rate on lambiaria settlement balances at 0%. , as expected.
The RBA statement has highlighted the strength of the Australian economy and employment, which is forecast to fall below 4% this year and remain below that level also in 2023. It has also been warned that although inflation is lower than in other countries, it is expected to grow in the coming months. In any case, the entity has not commented on future rate hikes.
Traders in the pair will be watching to digest the RBA announcement. Later in the day, US ISM Non-Manufacturing data could give the pair a further boost. In addition, several speeches are expected from members of the Fed, such as Brainard, Kashkari and Williams.
AUD/USD Levels
In the event of a major advance, the next major resistance appears in 0.7617ceiling of June 25, 2021. Above, the psychological zone awaits 0.7700 and the ceiling of May 2021, 0.7892.
On the downside, initial support is at the daily low 0.7535. Below 0.7500 there’s room to head towards 0.7480floor of April 1.
Source: Fx Street
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