The ASX 200 Index and the AUD/USD exchange rate continued the uptrend this week as demand for Australian assets jumped. The index jumped to $9,060, its highest level since October 29, and 8% above its lowest level in November last year and above its 2025 low.
Similarly, the AUD/USD exchange crossed the important resistance level at 0.7100 and reached its highest swing since June 2022. This rally makes the Aussie one of the best-performing currencies in the market.
ASX 200 Index and AUD/USD jumped despite hawkish RBA decision
Australian stocks and the currency have soared amid the ongoing monetary policy in Australia that has largely diverged from other central banks.
The RBA delivered a highly hawkish monetary policy as inflation jumped and the labor market tightened. Data released by the Australian Bureau of Statistics (ABS) showed that the headline and weighted inflation rose above the bank’s target of 2.0%.
At the same time, the labor market has tightened in the past few months, with the economy operating at full capacity. The unemployment rate retreated as the economy continued to create more jobs.
Therefore, the RBA decided to hike interest rates by 0.25% in the last meeting, pushing the benchmark rate to 3.85%. Analysts expect that the bank will continue hiking interest rates in the coming months.
The hawkish RBA and the ongoing US dollar weakness explain why the AUD/USD exchange rate has jumped to a multi-year high. Data shows that the DXY Index dropped to $96.8, much lower from last year’s high of $110.
Banks were among the best-performing companies in the ASX 200 Index. ANZ Banking Group jumped by 8.47%, reaching a record high of $40.35. It has jumped by over 60% from its lowest level in April last year.
Similarly, the Commonwealth Bank of Australia (CBA) jumped to $180, its highest level since November last year and 28% above the 2025 low. Westpac Bank stock soared to $41.50, while the financials segment jumped by 3.3%.
The other best-performing sectors were utilities and materials, which jumped by 2.8% and 1.9%, while top sectors like Healthcare and real estate dropped by 4.6% and 0.5%.
ASX 200 Index technical analysis
The daily timeframe chart shows that the ASX 200 Index has been in a strong uptrend in the past few months. It has soared from a low of $8,382, its lowest level in November last year to the current $9,045.
The index has formed an ascending channel and is now hovering near its highest level of the ascending channel. It has moved above the key resistance level at $9,000.
The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) moved above the neutral level at 50.
Therefore, the most likely scenario is where the index continues rising as bulls target the all-time high of $9,110. A move above that level will point to more gains to $10,000.
AUD/USD technical analysis
The weekly timeframe chart shows that the AUD/USD exchange rate has continued in a strong uptrend in the past few months and is now hovering at its highest level in 2022. It has jumped above the important resistance level at 0.6936, its highest level in September 2024.
The 50-week and 200-week Exponential Moving Averages (EMA) have formed a bullish crossover, commonly known as a mini golden cross. Also, the Average Directional Index (ADX) has continued rising, a sign that the uptrend is continuing.
Therefore, the index will likely continue soaring as bulls target the next key target at 0.7500.
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