Market Analysis: AUD/USD Skyrockets

FXOpen

Since the beginning of yesterday's trading session, the AUD/USD rate has increased by 1.7%. This is due to the difference in the monetary policies of the Fed and the RBA.

On the one hand, Philadelphia Fed President Patrick Harker said on Thursday that it was time to at least press the stop button for one meeting and see how it goes, referring to the June 13-14 meeting and the pause in a series of Fed’s interest rate hikes.

On the other hand, Australia raised the minimum wage by 5.75% from July 1, a decision that will affect the wages of 2 million people. This is an argument in favor of the fact that the RBA will continue to raise interest rates. The decision will be published on June 6th.

The AUD/USD chart shows that the rate has risen to the important level of 0.66. In March and April, it served as a support level. And according to AUD/USD technical analysis, after the bearish breakout in May, this level may now offer resistance.

If the bulls are able to gain a foothold above 0.66, their next target could be the median line of the down channel (shown in blue) that has been in place this year.

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