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Forex Today: Aussie falls as RBA raises bar for tightening

Forex Today: Aussie falls as RBA raises bar for tightening

The Reserve Bank of Australia increases the interest rate by 0.25%, but makes future increases more unlikely, causing the Aussie to collapse.

➡️ As expected, a few hours ago the Reserve Bank of Australia raised the interest rate from 4.10% to 4.35%, the highest in the last 12 years, but also raised the requirements for any further increases under the current tightening cycle , which was an accommodating approachThis caused the Aussie to decline, with the AUD currently the weakest currency in the Forex market today, while the US Dollar is the strongest, bringing into focus the AUD/USD currency pair.

➡️ The USD/JPY currency pair has moved back above the big round number of ¥150, showing renewed bullish momentum thanks to the new strength of the US dollar today. This currency pair remains within a valid long-term uptrend, so it will be interesting for trend traders.

➡️ Stock markets are mostly down today, especially in Asia, where is the HSI That the Nikkei 225 they fell by more than 1%.

➡️ Cocoa and sugar futures hit new multi-year highs yesterday, thanks to the good performance of soft raw materials. These foods will interest trend traders on the long side.

➡️ New Zealand inflation expectations data will be released later.

Credit by DailyForex.com

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