Chart of the Day: AUDUSD (02.05.2023)

9:14 AM 2 May 2023

The key event during the Asian session was the surprising decision by the Reserve Bank of Australia.The RBA decided to raise the Official Cash Rate (OCR) by 25 basis points to 3.85%. It was widely expected that the RBA will maintain the rate at an unchained level at 3.60%. Bankers justified their decision with high inflation and a tight labor market. Inflation is anticipated to be 4.5% in 2023 and 3% in mid-2025. Shortly after the announcement, the Australian S&P/ASX 200 fell and closed the session 1% lower, while the Australian dollar surged by dozens of pips.

Looking at the chart, the AUDUSD rate started to rise rapidly after 6:00 am. So far, no contrary signals have appeared, so further upward movement of AUD cannot be ruled out. Volatility on the Australian dollar may still appear during the  Lowe Philip speech the Governor of the Reserve Bank of Australia - at 1:20 pm.

​​​​​​​

AUDUSD H1 interval. Source: xStation5.

However, looking at the hourly chart, it is worth noting two geometries. The first one (blue) was already tested after 8:30 am, after which the rate set new local highs. It seems that even a correction of several dozen pips would not threaten the upward trend for now. The key intraday support is the level of 0.6668, where the lower limit of the 1:1 structure and the earlier local peak are located.

​​​​​​​

AUDUSD M15 interval. Source: xStation5.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits