AUDUSD Runs to a New High Going Back to 2022 & Backs off.What Keeps the Buyers in Control?

Key Takeaways

• RBA raised rates 25 bps, third consecutive hike
• AUD/USD broke 100‑hour and 200‑hour moving averages
• Pair peaked at 0.7277, entering 2022 resistance zone
• Support at 0.7221‑0.7227 holds buyers in control
• Break below 0.7221 could trigger correction toward 0.7196

Pulse Analysis

The Reserve Bank of Australia's decision to lift its cash rate by a quarter‑percentage point marks a decisive shift after a series of cuts earlier in 2025. By delivering a third straight hike, the RBA signals that inflation remains entrenched, prompting a risk‑on rally in the Australian dollar. For global investors, the move underscores the divergence between Australian monetary policy and that of other major central banks, which are either pausing or easing. Consequently, the AUD has become a proxy for higher‑yielding assets, attracting carry‑trade capital and boosting AUD/USD.

Technically, the currency pair responded with vigor, snapping above its 100‑hour and 200‑hour moving averages and racing toward the 0.7193‑0.7200 swing zone. Sellers briefly tested the 0.7221‑0.7227 resistance, a band that previously capped April highs, before buyers reclaimed the level and propelled the pair to a session high of 0.7277. That price now sits within a broader resistance corridor that held firm in 2022, between 0.7265 and 0.7288. The ensuing pullback has been corrective, leaving the 0.7221‑0.7227 area as the decisive near‑term support.

Looking ahead, the AUD/USD trajectory hinges on whether the pair can sustain momentum above the 0.7221‑0.7227 threshold. A clean break would keep bullish sentiment alive and open the path toward the 2022 swing resistance, potentially inviting further speculative buying. Conversely, a slip below 0.7221 could trigger a swing back to the 100‑hour average near 0.7196 and test the broader 0.7193‑0.7200 floor, where liquidity may shift to sellers. Traders and portfolio managers should monitor RBA commentary and global risk sentiment, as both will dictate the depth and duration of any correction.