The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.35% at its latest meeting, reversing the three rate cuts seen in 2025. The central bank signaled that, after recent tightening, policy is now well-positioned to respond to incoming data, with the Board focused on its mandate of price stability and full employment.
From a technical perspective, the AUDUSD initially moved higher following the decision but found sellers leaning against the 100-hour moving average at 0.7171. That rejection pushed the price down to a session low of 0.7136 before buyers stepped back in.
In early North American trading, momentum shifted more firmly in favor of buyers, with the price breaking above both the 200-hour moving average (0.7166) and the 100-hour moving average (0.7171). Holding above these levels keeps the bias tilted to the upside and gives buyers more control.
Looking ahead, the next key resistance comes in a swing area between 0.7193 and 0.7200 (dating back to April 15). A sustained move above that zone would open the door toward the April and early May highs between 0.7221 and 0.7227. Notably, last Friday’s rally briefly pushed above 0.7221, but failed by just a few pips before rotating lower—reestablishing that level as a firm resistance target.
On the downside, moving back below the 200 hour moving average at 0.7166 would have traders looking toward 0.7146 and below that, a swing area between 0.7100 and 0.71096. Break below it, and the sellers should push with more momentum.
Bottom line:
Buyers have regained control above the hourly moving averages, with upside momentum targeting the 0.7200 area and then the key 0.7221–0.7227 resistance zone.