The AUDUSD extended higher after the Reserve Bank of Australia raised rates by 25 basis points yesterday, effectively reversing the rate cuts seen earlier in 2025.
The move marked the central bank’s third consecutive hike as policymakers continue their fight against stubborn inflation pressures
Technically, the bullish momentum gained traction yesterday when the pair moved above both its 100-hour and 200-hour moving averages. That break helped propel the price toward an important swing area between 0.71936 and 0.7200. Sellers initially leaned against that resistance zone, pushing the pair back lower toward the rising 100-hour moving average in early trading today.
However, buyers successfully defended that support level, and the pair rebounded sharply during the Asian-Pacific session. The recovery gathered momentum as AUDUSD pushed through a key swing area between 0.7221 and 0.7227 — highs established in April and early May. Once above that ceiling, upside momentum accelerated, carrying the pair to a session high of 0.7277.