Forex
AUD/USD Eyes 0.7200 as RBA Rate Hike Looms
The AUD/USD exchange rate is gaining momentum after breaking above the 0.7100 level, setting its sights on the next target at 0.7200.
The Relative Strength Index (RSI) suggests that buyers are expecting further upside in the coming days, as the Reserve Bank of Australia is expected to raise interest rates at its September 29 meeting.
If the AUD/USD extends its gains above the current week's high of 0.7168, it could reach 0.7200 and potentially move higher to the September 9 daily high of 0.7237 or even the May 6 cycle high of 0.7277.
On the other hand, if the AUD/USD falls below the 50-day SMA of 0.7084, it could drop to the 100-day SMA at 0.7078 and potentially challenge the 200-day SMA at 0.7012.