The Reserve Bank of Australia kept rates steady but ruled out cuts, reinforcing a hawkish bias that lifted the currency above key technical levels.
The Reserve Bank of Australia left its benchmark rate unchanged at today’s meeting, but maintained a hawkish tone by dismissing rate cuts and leaving the door open for further hikes. The central bank cited persistent inflation and cost pressures as reasons the next move could still be higher, supporting the Australian dollar against the USD.
Prior to the decision, AUDUSD had traded near its 100-day and 100-hour moving averages around 0.7052. After an initial dip to a session low of 0.7041, buyers re-entered the market, pushing the pair back above both moving averages and to a new high of 0.7068. The rebound highlights the 100-day moving average as a critical support level.
Traders are now focused on the 0.70707 level, the 50% retracement of the May-June decline. A sustained break above this resistance could fuel additional upside momentum, though previous attempts to hold above it have failed.