Right now ended the common assembly of the Australian Financial institution of Australia, following which the leaders of the Australian Central Financial institution unexpectedly determined to go away the rate of interest on the similar stage of 4.10%.

In an accompanying assertion, they did be aware that “some additional tightening of financial coverage could also be wanted,” however this can depend upon how the financial system and inflation develop (for extra, see “AUD/USD: RBA Surprises Markets with Shock Choice”).

RBA leaders additionally harassed the dangers of world financial restoration, and yesterday’s knowledge from Australia confirmed the development of additional deceleration of inflation within the nation: the inflation price from TD Securities slowed to +0.1% in June (from +0.9% a month earlier) and to + 5.7% in annual phrases (from +5.9% in Could).

Instantly after the publication of the RBA resolution, the Australian greenback fell sharply, and the AUD/USD pair misplaced virtually 50 factors within the second, dropping to an intraday low of 0.6642.

On the time of publication of this text, the AUD/USD pair was within the vary between necessary short-term ranges: assist 0.6676 and resistance 0.6690, the breakdown of which in a single path or one other might decide the path of additional worth motion.

Within the first case, after the breakdown of the assist ranges of 0.6676, 0.6642 (immediately’s low), AUD/USD will head contained in the downward channel on the weekly chart, in the direction of its decrease border, which is presently passing close to native lows (since April 2020) and the marks of 0.6200, 0.6285.

The “quickest” sign for the implementation of the draw back situation is a breakdown of the extent 0.6664.

Nonetheless, technical indicators OsMA and Stochastic on the every day chart turned to lengthy positions, signaling the potential of growing an alternate situation for the expansion of AUD/USD.

On this case, the sign for the resumption of lengthy positions could also be a breakdown of the resistance ranges of 0.6690, 0.6700. Targets – resistance ranges 0.6720, 0.6750, 0.6780. Their breakdown will open the best way for additional progress to the important thing resistance ranges 0.6975, 0.7040, 0.7060, separating the long-term bear market from the bull market.

Help ranges: 0.6676, 0.6665, 0.6642, 0.6600, 0.6565, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170

Resistance ranges: 0.6690, 0.6700, 0.6720, 0.6750, 0.6780, 0.6800, 0.6900, 0.6975, 0.7000, 0.7040, 0.7060