AUD/USD downtrend seems to have halted, following the RBA's decision to increase rates by 25basis points, to 0.35% together with "withdrawing some of the extraordinary monetary support"
The RBA has also indicated the likelihood of further rate increases to prevent inflation from running too high and maintaining around their target range.
On release of the news, the AUD/USD move towards the 0.7150 level but retraced and is now sitting at the 0.71 support zone.
However, with the FOMC decision on Thursday morning, and the expectation for a 50basis point increase, the USD is expected to strengthen during that news event.
Therefore, look for the AUD/USD to test lower support of 0.70 and possibly 0.68 before any significant upside.
The RBA has also indicated the likelihood of further rate increases to prevent inflation from running too high and maintaining around their target range.
On release of the news, the AUD/USD move towards the 0.7150 level but retraced and is now sitting at the 0.71 support zone.
However, with the FOMC decision on Thursday morning, and the expectation for a 50basis point increase, the USD is expected to strengthen during that news event.
Therefore, look for the AUD/USD to test lower support of 0.70 and possibly 0.68 before any significant upside.