AUD/USD rallies post RBA policy meeting

The AUD/USD pair rallied to the highest since mid-May following the RBA’s policy meeting that unexpectedly raised interest rates. The cash rate was at an 11-year high of 4.1% earlier on the day. At the time of writing, the pair is trading at 0.6672. This development leaves the technical outlook bullish but there is a risk of a correction.

The major catalyst, if there is going to be a further upside, will be Fed’s interest rate path on June 14 and the outcome of FOMC meeting. A dovish resolve would be expected to support AUD/USD bulls on their path higher.

It is worth noting that the US Dollar Index (DXY), which tracks the performance of the buck against a basket of its rivals, climbs toward 104.142, up 0.10%. Also earlier on the day, the Australian Dollar outperformed its rivals following the rate hike, by 25 basis points.