The price of AUDUSD has consolidated this week despite the RBA hiking rates lower than forecasted. Could this see the price break lower?
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The AUDUSD price has consolidated on the daily time frame between 0.6525 and 0.6400. In recent news the RBA announced a rate hike from 2.35% to 2.60%. This 25bps hike fell short of the forecasted 50bps move. This slowdown in hiking rates came as a surprise to the market and the Australian Dollar has remained weak. They did suggest that further tightening will be needed but that they have tightened significantly already. The slowdown in pace could see the Australian Dollar continue to weaken further as other central banks continue to hike at a more aggressive pace.
Looking at the chart we can see the price trading between the two key levels of 0.6525 and 0.6400. If the USD were to strengthen after the NFP report we could see the price trade below and break the 0.6400 level. After this level there are multiple levels of support including 0.6300 and 0.6200 which could see price retest on the way down.
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