FxWirePro: AUD/USD softens after RBA rate hike

• AUD/USD  edged lower on Tuesday     after the Reserve Bank delivered a widely expected 25bp hike to 4.35%

• Australia’s central bank raised rates for the third time this year, returning borrowing costs to post-pandemic highs, and warned that sticky inflation and a Middle East oil shock will keep price pressures elevated..

•The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, reversing all three rate cuts made earlier in 2025. The decision passed 8–1, marking a more hawkish tone compared to the 5–4 split in March.

• The RBA said that after three rate hikes, monetary policy is “well placed to respond to developments,” signalling it may pause for now..

• Inflation rose to 4.6% in March, largely due to higher fuel costs, while core inflation stayed above the RBA’s 2%–3% target range..

•The oil price surge from the U.S.-Israeli conflict with Iran led the RBA to sharply lift its inflation forecasts, with headline inflation now expected to peak near 5%..

•  Immediate resistance is located at 0.7224(23.6%fib), any close above will push the pair towards 0.7232 (Higher BB).

•  Support is seen at 0.7138(Daily low) and break below could take the pair towards 0.7117(38.2%fib)

Recommendation: Good to sell  around 0.7150 with stop loss of 0.7230, and target price of 0.7060