Forex Brief: AUD/USD weakens after Reserve Bank of Australia raises interest rates to 18-year high

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• The Australian dollar fell 0.1% against the US dollar on Tuesday after the Reserve Bank of Australia raised the benchmark interest rate by 25 basis points to 4.85%, as expected by the market

• The Reserve Bank of Australia said it now expects inflation will remain elevated for most of 2027

• The market focus is shifting to the US midterm elections, with control of Congress still undecided

• Reports said the US carried out strikes on Iran’s Qeshm Island, leading Brent crude to strengthen during the Asian session

• Concerns over AI-concept trading continue to put significant pressure on overall market risk appetite

• Deputy Governor Hauser of the Reserve Bank of Australia will deliver a speech at the Australian National University in Canberra on Thursday

• If the Australian dollar breaks through the 55-day moving average level at 0.7069, it will open the space to challenge 0.7140

• During the Asian session, the trading range is between 0.69735-0.70035. Support levels are at 0.6865 and 0.6834, with resistance at 0.7140 and 0.7282

• For more FX news, please click FXNEWS/CN

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(Editor: Bai Yun)

((yun.bai@thomsonreuters.com))