The Australian dollar (AUD) has been a key currency in the foreign exchange (forex) market, known for its sensitivity to interest rate decisions. The Reserve Bank of Australia (RBA) recently made an announcement regarding its interest rates, and this article explores the potential impact on the AUD's strength across several forex pairs.

The AUDCHF Performance

Price has pushed down below 6 annual price pivots. Seems to have found a bounce at a support level of 0.58795 for a short-term retracement which started last month. The Reserve Bank of Australia unexpectedly raised the cash rate by 25bps to 4.1% in June after delivering it by the same margin in May. 

Price is approaching a neckline which signals a double bottom for more buyers to come in and lift the price. The first target after the neckline by momentum candles is 0.61905. There is a medium-term target 2 set at 0.63833 if the Australian Dollar continues to strengthen.

The GBPJPY Performance

Price is currently above the 52-week average, signalling that we still have upward momentum long term. We have had a rise of 3 highs in the past, but the price failed to break up towards the upside to complete the movement. The GBP is back again attempting to break those same highs it failed previously. 

The target is set on a monthly frame to the price point of 186.644. Price is currently between a range of 174.210 & 172.899. Breakout above 174.210 with a weekly could give us the momentum further to the upside. Traders be careful of another scenario; the price may just pause at the target and create another Lower high before retreating to form a more solid bear market.

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The AUDUSD Performance 

Referring notes: Weekly candle has closed below both 0.65790 & 065441, a sign of bearish continuation. We may see a retracement earlier this week based on the start of Monday back to test 0.65790.

As noted in the previous post, the price was retraced earlier; the initial retracement was suggested to occur at a price point 0.64521. The AUD has strengthened across multiple currency pairings; the US dollar has halted this week, with no substantial news to propel the price lower.

The price took 4 daily candles to push up versus the previous 3 candles to push down to where the support was held. We could see the price retrace and test the monthly pivot point at 0.67262 which is about 150 pips away from the previous breakout at 0.65790. Traders could look at re-entering at price point 0.66138 but must wait until one of the momentum timeframes closes below it.

Final thoughts on today’s analysis 

In conclusion, the recent interest rate decision by the RBA could have implications for the strength of the Australian dollar across several forex pairs. A rate hike is generally expected to strengthen the AUD against other major currencies, as higher interest rates attract foreign investors seeking better returns. However, it's crucial to consider other factors that may influence these currency pairs and monitor the market closely for a comprehensive analysis.