The Australian greenback strengthened sharply, whereas the AUD/USD pair rose after the RBA assembly ended at the start of the month, at which the financial institution’s leaders unexpectedly raised the rate of interest by 25 foundation factors to 4.10%. In an accompanying assertion, they famous that they made the choice towards the backdrop of continued inflation stress, which stays at an unacceptably excessive degree of seven.0% (the RBA goal is 2.0% – 3.0%), additionally not ruling out the potential for an additional improve within the rate of interest, if the financial state of affairs corresponds to this, and financial development and the well-being of residents won’t be considerably broken.

And but, additional on, the Australian greenback weakened, and the AUD/USD pair fell by now to the extent of 0.6600, returning to the zone of bear markets – medium-term, long-term and world.

On Tuesday, July 4, the common assembly of the Australian Central Financial institution will happen, and it’s probably {that a} sharp decline in inflation in Could will power RBA leaders to make one other pause in elevating rates of interest. That is prone to negatively have an effect on the place of the AUD, accelerating the decline in AUD / USD, together with towards the backdrop of continued expectations of an additional improve within the Fed’s rate of interest.

This week the worth examined the native help degree 0.6600. A breakdown of the native help degree at 0.6565 might be a confirming sign for the revival of the long-term downward dynamics of AUD/USD, sending the pair in the direction of the decrease border of the above downward channel, which is at the moment passing close to native lows (since April 2020) and marks 0.6200, 0.6285.

Under the important thing resistance ranges 0.7060, 0.7040 AUD/USD stays within the long-term bear market zone, and under the resistance ranges 0.6755, 0.6725 and within the medium-term bear market zone, which makes quick positions preferable within the present state of affairs.

Help ranges: 0.6600, 0.6565, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170

Resistance ranges: 0.6640, 0.6681, 0.6690, 0.6700, 0.6725, 0.6755, 0.6780, 0.6800, 0.6900, 0.6975, 0.7000, 0.7040, 0.7060