Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Australian Dollar Drifting

By Kenny FisherForexJun 27, 2022 11:18AM ET
Australian Dollar Drifting
By Kenny Fisher   |  Jun 27, 2022 11:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The Australian dollar had a relatively quiet week, and the limited movement has continued on Monday. There are no Australian releases today, so barring any surprises from today’s U.S. durable goods release, I expect little movement from AUD/USD in today’s session.

The Reserve Bank of Australia holds its policy meeting next week and is widely expected to raise rates. In June, the RBA hiked by 0.50%, surprising the markets, which had expected a smaller move. Even with the 0.50% salvo, the cash rate is currently only at 0.85%, meaning that the RBA will have to dramatically raise rates in order to curb spiralling inflation. In the first quarter, inflation rose to 5.1% and the RBA is predicting that inflation will rise to 6% before year’s end.

Lowe Says 0.75% Hike Unlikely

Governor Philip Lowe signalled on Friday that the RBA would not deliver a super-size 0.75% hike at next week’s meeting. Lowe said that such a move was “not on the table” and that the bank was looking at “graduated steps” at the July meeting. This means that the July meeting is live, with the RBA most likely to deliver a rate hike of 0.25% or 0.50%. There has been speculation that the cash rate could hit 4% in 2022, although some quick math indicates that the RBA would have to implement at least one 075% hike to achieve that level.

Lowe also touched upon the quandary facing the RBA (and other central banks), that being how to curb inflation with high interest rates without causing an economic downturn. The notion of aggressively raising rates and still being able to guide the economy to a ‘soft landing’ is a huge challenge, and Lowe acknowledged that the RBA had a “narrow path” to succeed.

AUD/USD Technical

  • AUD/USD is testing support at 0.6936. Below, there is support at 0.6877
  • There is resistance at 0.7004 and 0.7063

AUD/USD Daily Chart.
AUD/USD Daily Chart.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Australian Dollar Drifting

Related Articles

Al Brooks
EUR/USD: Breakout Likely By Al Brooks - Aug 08, 2022

The EUR/USD has continued to go sideways in a tight trading range which is now a triangle. There will likely be a breakout soon, but the direction is unclear. The bulls are...

Australian Dollar Drifting

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email