Australian Dollar Strengthens Following RBA Decision

Today, the AUD/USD pair experienced a spike in volatility. According to ForexFactory, analysts had forecast that the Reserve Bank of Australia (RBA) would cut interest rates from 3.85% to 3.60%. However, the market was caught off guard as the central bank opted to keep rates unchanged.

The RBA stated the following:

→ It remains cautious in its inflation outlook and awaits further evidence confirming that inflation is on track to return to the 2.5% target.

→ The decision to hold the rate was made by a vote of six to three — a rare instance of a split opinion among committee members.

The initial market reaction to the RBA’s unexpected move was a sharp appreciation of the Australian dollar. However, this was followed by a quick pullback in the minutes that followed (as indicated by the arrows).

Technical Analysis of the AUD/USD Chart

Since early July, price action in AUD/USD has been forming a descending channel (marked in red). In this context:

→ Today’s sharp rally and subsequent retracement underscored the significance of the upper boundary of the channel;

→ The pair tested a previously broken ascending trendline (the lower line of the blue channel);

→ Although the price briefly rose above the 0.65450 level, this area may now act as resistance going forward.

There is a possibility that, as forex trading unfolds throughout the day, AUD/USD could retreat towards the median line of the descending channel. Such a move could be interpreted as follows:

→ The initial reaction to the RBA decision may have been premature;

→ Selling pressure persists, which might trigger a move towards the support zone near 0.64850.

Looking ahead, the trajectory of AUD/USD in July 2025 will be largely influenced by developments surrounding a potential trade agreement between the United States and other countries, including Australia.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Markets Unfazed by Trump Tariff Letters; Kiwi Outshone by Aussie ahead of RBNZ Hold

Global equity markets traded cautiously and remained stable on Tuesday, showing limited reaction to escalating US trade threats. Major European indexes moved in narrow ranges following modest gains in Asia, while US equity futures stayed flat. The restrained response suggests markets are neither complacent nor panicked as they assess the credibility and timing of new

Wall Street is getting more bullish on stocks as trade uncertainty lingers

Fresh trade threats aren’t stopping Wall Street strategists from raising their bets on stocks. Goldman Sachs (GS) raised its year-end S&P 500 (^GSPC) target to 6,600 late Monday, up from a prior estimate of 6,100, citing deeper Fed rate cuts, lower bond yields, and investors’ willingness to look past near-term earnings weakness. Bank of America

Stock Market Outlook: S&P 500 to Hit New Records Despite Trump Tariffs: GS

Stock Market Outlook: S&P 500 to Hit New Records Despite Trump Tariffs: GS

President Donald Trump fanned the flames of the trade war on Monday, but fresh tariff uncertainty shouldn’t stop the stock market from cruising to record highs, Goldman Sachs predicted. Strategists at the bank raised their 3, 6, and 12-month price targets for the S&P 500 on Monday evening. Their updated forecast came hours after Trump

image

Stuck in a Range (Chart)

Bullish view Buy the BTC/USD pair and set a take-profit at 112,000. Add a stop-loss at 105,000. Timeline: 1-2 days. Bearish view Sell the BTC/USD pair and set a take-profit at 104,000. Add a stop-loss at 112,000. Bitcoin price was stuck in a range, continuing a trend that has been going on in the past

Montage of Donald Trump and some charts

Wall Street turns more bullish on US stocks despite Donald Trump’s tariff threats

Stay informed with free updates Simply sign up to the US equities myFT Digest — delivered directly to your inbox. Wall Street banks are turning more bullish on US stocks, despite President Donald Trump’s renewed threats of steep tariffs on major trading partners, with most big companies expected to shrug off the turmoil in the

ET logo

Former Sebi chief Madhabi Buch slams claims of regulatory failure in Jane Street case

Former SEBI Chairperson Madhabi Puri Buch has pushed back against allegations of regulatory failure, calling them a false narrative. She clarified that the regulator had, in fact, identified index manipulation by Jane Street and initiated several actions — including a cease-and-desist order — between April 2024 and February 2025. In a press statement issued today,

U.S. President Donald Trump gestures, as he speaks from a balcony, on the day he is expected to sign a sweeping spending and tax legislation, known as the "One Big Beautiful Bill Act," at the White House in Washington, D.C., U.S., July 4, 2025.

Global stock markets call president’s bluff

WASHINGTON, DC – JULY 7: An aide picks up a page from a letter to Japan and South Korea, signed by U.S. President Donald Trump, announcing 25% tariffs beginning on August 1st, during the daily press briefing in the Brady Press Briefing Room at the White House on July 7, 2025 in Washington, DC. Andrew

0
Would love your thoughts, please comment.x
()
x