The Reserve Bank of Australia raised rates by 25 basis points to 4.60% and, more importantly, explicitly kept the door open to further hikes. The bank noted that recent inflation has been stronger than expected, which leaves markets watching the next CPI print even more closely.

Despite that hawkish tone, AUDUSD is trading lower into today’s session, with Australian CPI still ahead. A hotter-than-expected reading could quickly support a rebound in the Aussie, especially after the pair has already sold off from nearby resistance.

From an Elliott Wave perspective, AUDUSD came down nicely from fourth-wave resistance and is now approaching potential support around the 0.70 / 0.6980 area. As long as price holds this zone, sellers may be running into an area where a bounce can start to develop. On the other hand, a move back above 0.7066 would be an early sign that the pair is trying to bottom and that the corrective downside from that resistance may be complete.

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Trade well,

Grega

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.