AUD/USD Slips Despite Hawkish RBA Decision

The Australian dollar (AUD/USD) failed to benefit from the Reserve Bank of Australia's (RBA) 25-basis-point rate hike, despite the decision being in line with expectations. The RBA lifted the cash rate to 4.60%, but the AUD/USD weakened after the announcement.

The US dollar has remained supported following recent turmoil in bond markets, and the near-term AUD/USD outlook is subject to more volatility due to upcoming key data releases.

According to technical analysis, a break below 0.7000 on a closing basis would confirm the break below the 200-day moving average, bullish trend line, and psychological level, potentially leading to further selling towards 0.6900 and then 0.6800.