AUDUSD pair reached a new 2022 high and trades at the highest level since November 4 as investors assess whether the Reserve Bank of Australia will follow FED footsteps. Some economists expect that RBA will lift interest rates up to 1.5% this year, compared to earlier forecasts of 1.25%. The first rate hike could take place in June as the central bank said it was open to monetary tightening if the economy will continue to expand strongly. The argument for a rate hike strengthened after the labour market data showed that the unemployment rate in Australia dropped to 4.0% which is the lowest level in 14 years.
AUDUSD pair rose sharply in recent days and is currently testing key resistance at 0.7420, which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. If current sentiment prevails, the next target for buyers is located at 0.7550 and is marked with previous price reactions and upper limit of the 1:1 structure. On the other hand, if sellers manage to regain control, then nearest support lies at 0.7334. Source: xStation5
