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      Australian Dollar Declines Despite RBA Rate Hike

      The Reserve Bank of Australia (RBA) has increased its cash rate target by 25 basis points to 4.60%, citing persistent inflation concerns. Despite this expected rate hike, the Australian dollar (AUD) has continued to decline against the US dollar (USD), extending a downward trend that began after reaching a high of 0.7237 on September 9.

      The decline in the AUD/USD exchange rate has been influenced by a stronger US dollar, driven by rising US yields amid expectations of a more hawkish stance from the Federal Reserve. Following the RBA's decision, the AUD/USD pair fell to its lowest level since late July, reaching 0.6979. This drop occurred after the pair failed to maintain a bounce above key technical levels, including the 200-day moving average.

      Currently, the AUD/USD is trading at approximately 0.69902, remaining below the critical 61.8% retracement level of 0.7007. Analysts suggest that sustained trading below this level keeps the bearish bias intact, while buyers need to reclaim this and the 200-day moving average to shift momentum. The outlook remains cautious as sellers continue to dominate the market.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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