FxWirePro: AUD/USD jumps after RBA rate hike

• AUD/USD rose on Tuesday  after  Reserve Bank of Australia raised rates for first time in two years.

• Australia’s central bank raised its policy rate for the first time in two years, citing stronger-than-expected growth and persistently high inflation.

• The RBA ended its February meeting by raising rates 25 bps to 3.85%, marking the first hike in two years and just six months after its last cut.

• Investors increased bets on a May rate hike to 75%, with markets pricing in a total of 40 bps of tightening this year.

• Market focus now shifts to Governor Michele Bullock’s press conference, where comments and updated forecasts will guide the RBA’s policy outlook.

•  Immediate resistance is located at 0.7064(23.6%fib), any close above will push the pair towards 0.7095(Higher BB).

•  Support is seen at 0.6945 (38.2%fib) and break below could take the pair towards 0.6850(50%fib)

Recommendation: Good to buy  around 0.7000 with stop loss of 0.6900 and target price of 0.7090