AUD/USD Price Forecast: Consolidates above 0.7200, highest since June 2022 ahead of RBA

AUD/USD is seen consolidating its recent strong gains amid a combination of diverging forces.
Hawkish RBA bets continue to underpin the Aussie, while rising US-Iran tensions cap the upside.
Bulls also seem hesitant and await the crucial RBA rate decision on Tuesday for a fresh impetus.

Haresh Menghani FXStreet

The AUD/USD pair enters a bullish consolidation phase at the start of a new week and holds steady above the 0.7200 mark, near its highest level since June 2022, touched on Friday. Bets that the Reserve Bank of Australia (RBA) will hike interest rates at the upcoming policy meeting on Tuesday continue to underpin the Aussie. However, rising US-Iran tensions benefit the safe-haven US Dollar (USD) and act as a headwind for spot prices ahead of the key central bank event.

Against the backdrop of the recent bounce from the 100-period Exponential Moving Average (EMA) on the 4-hour chart, Friday's breakout and close above the 0.7200 horizontal barrier were seen as a key trigger for the AUD/USD bulls. Moreover, the Relative Strength Index (RSI) around 62 suggests firm positive momentum without yet entering overbought territory. Adding to this, the Moving Average Convergence Divergence (MACD) histogram remains slightly positive, hinting that upside pressure is intact.

The technical setup backs the case for an extension of the AUD/USD pair's recent move higher from the late-March swing low. Hence, any corrective pullback is more likely to attract buyers and remain limited in the near term. The 100-period EMA around 0.7137 might continue to offer immediate support, which, if broken decisively, would signal fading bullish control and open the way for a deeper correction.

(The technical analysis of this story was written with the help of an AI tool.)

AUD/USD 4-hour chart

Economic Indicator

RBA Interest Rate Decision

The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.

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