RBA raises interest rates and signals for AUD bullishThe Australian Central Bank raised interest rates more than market participants expected and signaled they could increase interest rates more in the coming period to curb high inflation. The RBA this morning raised interest rates by 25 BPS to 0.35%, This is a the first to do so in almost 15 years as Australia is in elections.
However the RBA is also firmly committed to doing what is needed to ensure that inflation in Australia returns to target over time and this requires further rate hikes over the coming period, Governor Philip Lowe said.
Market Direction
By looking at the above phenomenon, it can be ascertained that the strengthening of the AUD currency in the future can last a long time because it is predicted that the Australian central bank will raise interest rates to reduce the impact of prolonged inflation, the above conditions will have an impact on the pair:
Pair
EUR/AUD Tend to be under pressure Bearish
Entry Sell
R1: 1.5019
R2: 1.512265
R3: 1.521558
Take Profit
S1: 1.466516
S2: 1.453291
S3: 1.43971
