Australia’s central bank joined Japan as one of the few developed economies tightening monetary policy, stating that above-target inflation and a tight labour market warranted a unanimous decision to raise the cash rate by 25 basis points to 3.85%. The move was largely anticipated by markets, but traders are now quickly pricing in a possible follow-up hike in May, which helped lift the Australian dollar by about 1%, pushing it above 70 U.S. cents.

However, beyond the 0.71 level, AUD/USD may face notable resistance, as selling interest could potentially increase.