Aussie rallied broadly after the RBA raised the cash rate by 25bps to 3.85%, in line with expectations. While the decision itself was fully priced, the accompanying forecasts carried an implicit signal that another rate hike is likely later this year, providing fresh support to the currency.
AUD/USD quickly pushed back above the 0.7000 mark following the announcement. Technically, strong support has been established at 55 4H EMA, suggesting that the recent consolidation from the 0.7093 should remain shallow and temporary.
Decisive break above 0.7093 would confirm continuation of the broader uptrend from 0.5913 (2025 low). In this scenario, AUD/USD would be on track to 100% projection of 0.5913 to 0.6706 from 0.6420 at 0.7213 in the next leg higher.
