AUDUSD jumps as RBA delays rate cut. What’s next? | Forexlive

The USD remained supported since last Thursday’s US NFP report as the data came out better
than expected and triggered a hawkish repricing in interest rates expectations.
Unfortunately for the greenback, that wasn’t enough as wage growth came out on
the softer side which limited further repricing and more sustained gains.

On the AUD side, the RBA surprised today by keeping the Cash Rate steady but clarified that they just wanted to see the next quarterly CPI data. In the bigger picture, as long as global growth impulse remains positive, the pair should remain in an uptrend but further hawkish repricing in interest rates expectations for the Fed could trigger deeper pullbacks in the short-term.

On the daily chart, we can
see that AUDUSD is trading inside a broadening wedge with the top trendline acting as resistance and the 0.6350 price area as support. The NFP might have marked a short-term top but the USD will likely need the support from higher than expected CPI figures to extend the gains into the 0.6350 support.

On the 1 hour chart, we can see that the price already reached the upper bound of the average daily range so we might not see much follow through for the rest of the day. There’s a minor downward trendline though where we can expect the sellers to lean onto to position for a drop into the 0.6350 support. The buyers, on the other hand, will likely lean on the minor support zone around the 0.6520 level to target a break above the trendline.