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. That peak entered a broader resistance zone dating back to 2022 between 0.7265 and 0.7288, where sellers once again stepped in with clearly defined risk.
The subsequent pullback during the North American session has been corrective rather than impulsive. Importantly, the decline stalled just above the former breakout zone between 0.7221 and 0.7227, with the corrective low reaching 0.7228. That keeps the prior resistance area intact as new support.
What next?
The 0.7221–0.7227 area is now the key near-term barometer for both buyers and sellers. As long as the price remains above that zone, buyers remain in control and another rotation toward the 2022 swing resistance between 0.7265 and 0.7288 remains possible.
Conversely, a move back below 0.7221 would weaken the bullish bias and open the door for a deeper correction toward the 100-hour moving average near 0.7196, followed by the broader support zone between 0.7193 and 0.7200.