AUDUSD test of 200 day SMA resistence in area 0.6690 after 25 bp RBA hike
MarketsFN Team
After the RBA with a surprise move, hiked its cash rate to 4.1%, the highest level since 2012, AUDUSD rallied nearly to its 200 day SMA in area 0.6690. Last week the pair made a 2023 low at 0.6460 after dropped below 0.618 Fibonacci support of the uptrend October 2022 – February 2023.
A reversal too place with 4 consecutive positive sessions, possible now to see some take profit from short term traders with a compressed volatility, waiting also for the FED rate decision for next week on 14 Jun.
The Australian dollar is today the best G7 currency vs. the greenback.
The RBA with this decision, is keeping real interest rates negative, since inflation is still at 7% despite has passed its peak. Considering that the unemployment rate has increased slightly and growth has slowed, the move brings back priority on prices stability.
