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AUD/USD falls after RBA raises OCR to 4.35%

Earlier today the Reserve Bank of Australia did exactly as expected and raised their official cash rate to 4.35% from 4.1%. Prior to the decision the AUD/USD was drifting lower, to around 0.6470, after stalling on the topside yesterday at 0.6523. It had closed in the US at 0.6489, as the US wider dollar made a comeback. The initial reaction to the RBA decision saw the AUD/USD spike to 0.6501, but the move was over in a heartbeat and it has fallen back to as low as 0.6431, reached a short while ago. Outside of any Buy the Rumour, Sell the Fact type of price reaction, the main reason for the drop appears to lie with a change in the policy statement.That now infers a more data dependent approach going forward from the RBA. The immediate lines of demarcation could be the 50 day moving average on the downside, now at 0.6394 and the 100 day on the topside, now at 0.6508. The AUD/USD is currently trading at 0.6435

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