AUD/USD Stays In A Downtrend
Gregor Horvat | May 03, 2022 03:54AM ET
The RBA is finally turning hawkish, raising the rate more than expected to 0.35%, with more hikes in view for the upcoming months. So it seems like policy is changing here, all to fight the inflation, which could be supportive for the Aussie going ahead.
Technically, however, we do not see a bullish trend yet. Looking at the intraday chart, that's only a fourth wave rally right now, which may stop around 0.7180-0.7230 resistance, so be aware of another leg down before the pair can bottom.
Ideally, AUD/USD will find the base and turn up in the second half of this year when stocks may also come up from the support and when China is back to everyday life. For now, covid is still an issue there, impacting the economy, which is also one of the reasons for weak Aussie over the last few months.
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