FxWirePro: RBA announces a 50 bps rate hike, AUD/USD slumps below 0.70 handle

Chart - Courtesy Trading View 

AUD/USD was trading 0.44% lower on the day at 0.6988 at around 04:45 GMT.

The Australian dollar was sold off across the board after the Reserve Bank of Australia (RBA) rate hike announcement.

The RBA has raised its Official Cash Rate (OCR) by 50 basis points (bps) to 1.85% in line with the market expectations.

Indecision over the RBA’s next move amid rising price pressures, as well as the risk-off mood weigh on the pair.

Data released by the Australian Bureau of Statistics last week showed Q2 inflation rate stood at 6.1%, higher by 100 bps than the previous quarter’s print.

On the other side, the US dollar index remains weak ahead of US NFP data due Friday. Markets expect US economy created 250k jobs in July, lower than the prior release of 372k.

Major Support Levels: 

S1: 0.6956 (200H MA)

S2: 0.6923 (21-EMA)

Major Resistance Levels: 

R1: 0.70

R2: 0.7058 (110-EMA)

Summary: AUD/USD finds stiff resistance at daily cloud base. The major has surrendered the crucial support of 0.7000. Immediate support is seen at 200H MA at 0.6956. Break below 200H MA will see more weakness.