Market Analysis: Australian Dollar Plummeting After RBA Decision
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The Reserve Bank of Australia (RBA) this morning decided to leave the interest rate at 4.10%, although market participants expected an increase to 4.35%.
According to the forecast of the central bank, inflation in Australia will return to its target range of 2-3% by the end of 2025 from the current 6%. At the same time, a warning was made that additional tightening (rate increase) may be required to curb inflation.
Amid the RBA's decision, the Australian dollar weakened against other currencies. So, on the AUD/USD chart, the price fell below the level of 0.665. At the same time, a reversal was formed from the median line of the channel, shown in blue; at yesterday's maximum, it was tested as a resistance line.
If the downward movement on the AUD/USD pair caused by the RBA decision continues, then the market may find support:
- at the level of 0.6624 – where important July lows were formed;
- at the level of 0.66 – there are important June lows;
- near the lower border of the blue channel.
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