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AUD/USD stalls near 0.6900 to 0.6950 as rate signals stay mixed
Recent US FOMC minutes showed near parity on the next move, keeping the dollar supported and leaving the Australian dollar unable to break from its trading range.
The Australian dollar held steady against the US dollar on Wednesday, with AUD/USD pinned between 0.6900 and 0.6950 and showing little follow through, a sign that the prior rebound has lost momentum, FXStreet reported. The pair had been climbing for five sessions after moving away from the 200-day exponential moving average near 0.6900, but it stalled and printed a doji-like pause in the middle of last week’s range.
The lack of direction is linked to diverging but not fully decisive central bank signals, according to FXStreet. Wednesday’s Federal Open Market Committee minutes, released at 18:00 GMT, reflected a split nearly down the middle on policy, with the June dot grid showing nine hikes, eight holds, and one cut, which helps keep the US dollar bid on dips and weighs on risk currencies like the Aussie.
FXStreet also pointed to the Reserve Bank of Australia holding its cash rate at 4.35% in June after three hikes earlier this year. With the US and Australian policy outlook moving in the same broad tightening direction, AUD/USD lacks a clear rate differential catalyst, leaving it to consolidate rather than trend.
While renewed conflict-related risk and energy moves often hit risk proxies, the outlet said Australia’s export mix can partially offset that effect, since Australia sells the energy that crude has been repricing. FXStreet added that iron ore, influenced by Chinese construction demand, is likely a more direct driver of the Aussie’s outlook than energy itself.
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