RBA Looking to Hike Sooner Than ExpectedThe Aussie Dollar has been the strongest performer of the day following a hawkish surprise at the RBA rates meeting overnight. While no change in monetary policy was announced, the tone of the meeting statement struck a much more hawkish note with the RBA removing the word “patient” from the language around its rate hike guidance. In light of the this development, market pricing for an RBA rate hike in the coming months has now soared with pricing reflecting expectations for a hike by June.The RBA’s assessment and outlook were both bullish with the bank noting a strong domestic economy and reduced downside risks. Indeed, with inflation rising and expected to continue rising, the bank is now in a state of readiness to raise rates, a theme we are seeing across the G10 space.Technical ViewsAUDUSDThe breakout above the bearish trend line in AUDUSD is gathering strong momentum now. Price has broken above the October 2021 highs at .7564 and, with both MACD and RSI firmly bullish, the focus is on a continuation higher while price holds above that level. The focus now is on a test of the .7656 level next with .7770 the next target for bulls should we continue higher here.
Source: Tickmill
