RBA Rate Hike Keeps Further Tightening on Table for AUDUSD

The Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 4.60% in a move that leaves further tightening on the table, particularly ahead of the next consumer price index (CPI) print.

Despite this hawkish tone, the AUDUSD is trading lower into today's session, with Australian CPI still upcoming. A hotter-than-expected reading could quickly support a rebound in the Aussie, especially after the pair has already sold off from nearby resistance.

From an Elliott Wave perspective, AUDUSD came down nicely from fourth-wave resistance and is now approaching potential support around the 0.70 / 0.6980 area. As long as price holds this zone, sellers may be running into an area where a bounce can start to develop.