The RBA shifted their bias more toward tightenings earlier vs later as they took out the word “patient” with regard to inflation. Expectations are now for a hike by June.
The shift sent the AUDUSD trending to the upside.
Recall from yesterday, the price had moved up above swing highs from the month of March between 0.7535 and 0.75394. Up until the interest rate decision, the price had stayed just above that swing area. The statement sent the price quickly to the upside.
In the current hour, the price has moved to a new session high above the London morning high of 0.76389.
Looking at the daily chart, the price is also moved above the 0.7645 level. Going back to June 2021, there were lows on June 3 and June 4 followed by a high on June 17. The current price trading at 0.7659, that level will be a close risk level. Alternatively, the 61.8% retracement of the move down from the February 2021 high comes in at 0.76094. That is also a longer-term risk level.