AUD/USD climbs after RBA rate hike, markets price in further tightening

💡 DMK Insight

The RBA’s interest rate hike is a game changer for AUD/USD traders right now. With the Australian Dollar gaining momentum, this move signals a shift in monetary policy that could lead to further strength in the AUD. Traders should be aware that the RBA’s decision reflects a commitment to combat inflation, which is crucial as it sets the stage for potential future hikes. This could create a bullish trend for the AUD, especially if the USD remains under pressure from ongoing economic uncertainties. Watch for key resistance levels around recent highs, as breaking through these could trigger a new wave of buying. On the flip side, if the USD rebounds due to stronger-than-expected economic data or a hawkish stance from the Federal Reserve, it could dampen the AUD’s gains. Keep an eye on the upcoming US economic indicators, as they could provide insight into the USD’s trajectory. For now, monitor the AUD/USD pair closely, especially around the 0.6500 level, as it could act as a pivotal point in the near term.