What technical levels are in play for the AUDUSD through the RBA rate cut in the new day?

The Reserve Bank of Australia (RBA) is set to cut interest rates for the first time in four years when it announces its decision later today at 10:30 PM ET. The benchmark rate has remained at 4.35% for 10 consecutive meetings, and with inflation easing, the RBA is now positioned to begin a rate-cutting cycle.

Despite expectations of a cut, AUDUSD has risen for two consecutive weeks after bottoming at 0.60875, its lowest level since April 2020. While the pair has gained, it still trades near five-year lows, leaving room for further upside despite the anticipated rate reduction.

Key Technical Levels to Watch

• Support Levels:

  • 0.6334 – Staying above this level keeps the short-term bullish bias intact and could allow buyers to push higher.
  • 0.6287–0.6301 – If the price breaks below 0.6334 but finds support here, buyers remain in play. However, a deeper drop could strengthen sellers’ control.
  • Below 0.6287 – Expect increased downside momentum if this level is breached.

• Resistance Levels:

  • 0.64139 (38.2% retracement) – A break above this level could shift focus toward higher targets.
  • 0.64419 (100-day moving average) – This is a major bullish trigger, as AUDUSD has not traded above its 100-day MA since October 2024. A sustained move above would reinforce bullish sentiment from a technical standpoint.

Traders will be closely watching whether buyers can maintain control above key support levels to sustain the recent upside momentum or if sellers take advantage of a dovish RBA decision to push AUDUSD lower.