Market Analysis: Australian Dollar Plummeting After RBA Decision

<img src="https://fxopen.com/blog/en/content/images/2023/08/AUD-Forecast.jpg" alt="Market Analysis: Australian Dollar Plummeting After RBA Decision" /><p><br>The Reserve Bank of Australia (RBA) this morning decided to leave the interest rate at 4.10%, although market participants expected an increase to 4.35%.</p><p>According to the forecast of the central bank, inflation in Australia will return to its target range of 2-3% by the end of 2025 from the current 6%. At the same time, a warning was made that additional tightening (rate increase) may be required to curb inflation.</p><figure><img src="https://lh3.googleusercontent.com/qheW8N1pE5a31OgOled2q90_b9MZC1cqrkqurtymxTqoWtxUAtWmuS2dmIVf4WrbwvpFyEQ9V7eYsZKsr0uYMxfMW10eISGlvbsbJqXngbD_EzEFA1iwmijWJycO3jvTxX7jR6TptOXCjfpSb5uSCiQ" alt="Market Analysis: Australian Dollar Plummeting After RBA Decision" loading="lazy" /></figure><p>Amid the RBA&apos;s decision, the Australian dollar weakened against other currencies. So, on the AUD/USD chart, the price fell below the level of 0.665. At the same time, a reversal was formed from the median line of the channel, shown in blue; at yesterday&apos;s maximum, it was tested as a resistance line.</p><p>If the downward movement on the AUD/USD pair caused by the RBA decision continues, then the market may find support:</p><ul><li>at the level of 0.6624 – where important July lows were formed;</li><li> at the level of 0.66 – there are important June lows;</li><li> near the lower border of the blue channel.</li></ul>