Australian Dollar Plummeting After RBA Decision
The Reserve Bank of Australia (RBA) this morning decided to leave the interest rate at 4.10%, although market participants expected an increase to 4.35%.
According to the forecast of the central bank, inflation in Australia will return to its target range of 2-3% by the end of 2025 from the current 6%. At the same time, a warning was made that additional tightening (rate increase) may be required to curb inflation.
Amid the RBA's decision, the Australian dollar weakened against other currencies. So, on the AUD/USD chart, the price fell below the level of 0.665. At the same time, a reversal was formed from the median line of the channel, shown in blue; at yesterday's maximum, it was tested as a resistance line.
If the downward movement on the AUD/USD pair caused by the RBA decision continues, then the market may find support:
→ at the level of 0.6624 – where important July lows were formed;
→ at the level of 0.66 – there are important June lows;
→ near the lower border of the blue channel.
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.
According to the forecast of the central bank, inflation in Australia will return to its target range of 2-3% by the end of 2025 from the current 6%. At the same time, a warning was made that additional tightening (rate increase) may be required to curb inflation.
Amid the RBA's decision, the Australian dollar weakened against other currencies. So, on the AUD/USD chart, the price fell below the level of 0.665. At the same time, a reversal was formed from the median line of the channel, shown in blue; at yesterday's maximum, it was tested as a resistance line.
If the downward movement on the AUD/USD pair caused by the RBA decision continues, then the market may find support:
→ at the level of 0.6624 – where important July lows were formed;
→ at the level of 0.66 – there are important June lows;
→ near the lower border of the blue channel.
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.
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