Australia's Central Bank Raises Interest Rates to 18-Year High

The RBA's decision to raise interest rates to an 18-year high is a fundamentally supportive signal for the AUD, but the market may have largely priced it in. On the technical side, the RSI at 28.5 is in oversold territory and the price is below the SMA20/SMA50, which increases the likelihood of a short-term rebound. The MACD is still negative and below the signal line, so there is a risk that the upside remains limited. I expect a slight upward recovery in the 1-3 day window, but the 0.7000-0.7020 resistance zone is critical. If the hawkish surprise is already priced in, a 'sell-the-news' reaction could be seen.

The RBA's decision to raise interest rates to an 18-year high creates tightening pressure on the equity index and may reduce risk appetite in the short term. The ASX is currently below its SMA20 and in negative territory below the MACD signal line; the RSI at 41.8 confirms weak momentum. The latest close at 8844.9 is just below the SMA50 (8858), pointing to a fragile technical picture. A downward bias is likely over the next 1-3 days as the rate hike creates pressure on growth and valuations, though one should not be overly aggressive since the news may be largely priced in. Support should be watched around 8800, with resistance at 8890-8900.

The Reserve Bank of Australia's decision to raise interest rates to an 18-year high indicates that the global central banks' tightening cycle is not yet over. This could reduce risk appetite and create pressure for capital outflows from emerging markets. In countries with high external financing needs like Turkey, short-term upward pressure on the exchange rate and interest rates may emerge. However, the impact may remain limited, as the market had largely priced in this decision.