The Reserve Bank of Australia made it very clear last night that they do not plan to raise interest rates in the foreseeable future. Despite the rise in commodity prices, the RBA expressed little concern about inflation. As a result, the AUD/USD extended its losses as investors realized that unlike the ECB and other central banks who are just beginning their tightening cycles, the RBA is done.

Yesterday, I posted the following chart showing how RBA decisions can frequently mark a short to medium term top in the AUD/USD. It seems like the same scenario could be unfolding again. What do you think?

Pre Rate Decision

Post Rate Decision