- AUD/USD loses ground as RBA meets rate hike expectations.
- Short-term risk is tilted to the downside.
- A close below 20-SMA could extend decline.
AUD/USD retreated to 0.7134, extending Monday’s losses after the Reserve Bank of Australia (RBA) delivered its third consecutive rate increase, as expected, to quell inflation while signaling a data-dependent approach for future policy actions. A relatively firmer dollar, amid escalating tensions in the Middle East, added extra pressure on the pair.
Technically, the pullback emerged after the 0.7200 bar stood firm once again near four-year highs, bringing the 20-day simple moving average (SMA) at 0.7135 back into view. A break lower would put April’s upleg into question, shifting the spotlight toward the 50-day SMA at 0.7050. Should the sell-off extend beyond 0.6980, the next pivot point could come at the March low of 0.6840.
Given the negative trajectory in the RSI and the MACD, there is limited optimism for short-term acceleration. Nevertheless, if the bulls reclaim the 0.7200 level and revive the 2025 uptrend, the door could open toward the ascending trendline connecting the 2025 and 2026 highs, currently seen near 0.7350. The 0.7445 resistance taken from April 2025, could be the next destination.
In summary, AUD/USD appears to be losing bullish momentum in the short-term picture as it tests a key support area around 0.7135. Failure to hold this level could trigger another wave of selling.
 delivered its third consecutive rate increase, as expected, to quell inflation while signaling a data-dependent approach for future policy actions. A relatively firmer dollar, amid escalating tensions in the Middle East, added extra pressure on the pair.){kind=link}