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The Reserve Bank of Australia (RBA) increased its cash rate by 25 basis points to 4.35%, reversing earlier 2025 rate cuts. Technically, the AUD/USD pair initially rose post-decision but faced resistance at the 100-hour moving average (0.7171), retreating to 0.7136 before rebounding. Subsequently, buyers pushed the price above both the 100-hour and 200-hour moving averages (0.7171 and 0.7166), securing a bullish bias. Key resistance lies between 0.7193 and 0.7200, with a breakout potentially targeting 0.7221–0.7227. A breakdown below 0.7166 could see further declines toward 0.7146 and 0.7100–0.71096.
For traders, the RBA's hawkish stance and technical momentum above critical moving averages signal a bullish setup. The AUD/USD's ability to hold above 0.7166 is crucial for maintaining upside momentum. The next resistance zone at 0.7200–0.7227 represents a key target for bulls, while a breakdown would shift focus to support levels below the 200-hour MA. This move could influence broader forex markets, particularly in the Asia-Pacific region.
MENA investors should monitor RBA policy shifts and AUD/USD technical levels, as a sustained breakout could attract carry-trade flows. Key watchpoints include the 0.7200 psychological level and the 0.7221–0.7227 resistance zone. A failure to hold above 0.7166 might trigger renewed bearish pressure, impacting related commodities like gold and oil.
