The key event during the Asian session was the surprising decision by the Reserve Bank of Australia.The RBA decided to raise the Official Cash Rate (OCR) by 25 basis points to 3.85%. It was widely expected that the RBA will maintain the rate at an unchained level at 3.60%. Bankers justified their decision with high inflation and a tight labor market. Inflation is anticipated to be 4.5% in 2023 and 3% in mid-2025. Shortly after the announcement, the Australian S&P/ASX 200 fell and closed the session 1% lower, while the Australian dollar surged by dozens of pips.
Looking at the chart, the AUDUSD rate started to rise rapidly after 6:00 am. So far, no contrary signals have appeared, so further upward movement of AUD cannot be ruled out.
However, looking at the hourly chart, it is worth noting two geometries. The first one (blue) was already tested after 8:30 am, after which the rate set new local highs. It seems that even a correction of several dozen pips would not threaten the upward trend for now. The key intraday support is the level of 0.6668, where the lower limit of the 1:1 layout and the earlier local peak are located.