AUD/USD Rally Resumes After RBA Rate Hike
The RBA rate hike sent the Australian dollar higher against the U.S. dollar, reshaping AUD/USD dynamics as markets digest renewed tightening from the Reserve Bank of Australia.
AUD/USD strengthened today following the RBA’s first rate increase in over two years, lifting the cash rate by 25-bps to 3.85% in response to persistent inflation pressures and strong domestic demand. The decision marked a notable shift from the central bank’s prior easing cycle, with Governor Michele Bullock stressing that inflation remains above target and that tighter policy may be needed. The Australian Dollar rose back above the 0.7000 level against the U.S. dollar after the announcement as markets recalibrated expectations for further RBA tightening in 2026.
AUD/USD Daily Price History
In the above chart, AUD/USD rates have found former resistance transformed into support in the form of the 2024 high near 0.6943. The prior ascending triangle, which broke out above 0.6700, has indicated for weeks that bulls are in control. The latest price action – breaking out, retesting the breakout, and continuing higher – affirms that view. Momentum is accelerating again, with the rates of change for each of the 5-day, 20-day, 50-day, and 100-day exponential moving averages (EMA) increasing anew. The next meaningful level of resistance comes at the 2023 high at 0.7158.
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