AUD/USD surges on RBA's hawkish 25bp hike to 3.85%

AUD/USD jumped sharply following the Reserve Bank of Australia's unanimous decision to raise interest rates by 25 basis points to 3.85%, in line with market expectations. The central bank delivered a hawkish surprise by lifting inflation forecasts and signaling potential further tightening through 2026, supporting the Australian dollar's strength. The RBA's commitment to combating persistent inflation contrasts with other major central banks considering pause or pivot scenarios. Asian risk sentiment improved notably, with Japanese stocks surging on tech rebounds and the KOSPI rocketing higher on banking sector gains. The People's Bank of China set the USD/CNY reference rate at 6.9608, while Goldman Sachs highlighted gold's surge as reflecting structural demand shifts. The hawkish RBA stance suggests AUD/USD could test resistance levels near 0.6750, with support established around 0.6650 as traders position for potential further Australian rate increases.