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AUD/USD steadies near 0.7060 ahead of RBA rate decision
Traders are looking for the RBA to keep the Official Cash Rate at 4.35% and pair the decision with an updated Monetary Policy Statement and forecasts.
AUD/USD held on to gains in Asian trading, moving back toward about 0.7060 after a modest drop the prior day, as focus turned to the Reserve Bank of Australia’s upcoming policy decision, FXStreet reported.
The RBA is widely expected to keep its Official Cash Rate steady at 4.35% for a second consecutive meeting, with the decision due at 04:30 GMT. The announcement will be accompanied by the Monetary Policy Statement and updated economic forecasts, followed by RBA Governor Michele Bullock’s press conference at 05:30 GMT.
FXStreet also linked the Aussie’s support to the US dollar environment after softer-than-expected July payrolls, which shifted market expectations toward a more dovish Federal Reserve stance. Cleveland Fed President Beth Hammack said the Fed would need more than one rate hike to rein in broadening inflation and argued that current rates are not yet meaningfully restrictive enough, with the CPI report framed as a key test.
Strategists at Societe Generale pointed to AUD/USD technical resilience, saying the pair defended the 200-day moving average in June and formed higher highs and higher lows on the daily chart, indicating a short-term uptrend. The report added that the RBA rate path remains a core driver, alongside factors such as iron ore prices, Chinese economic conditions, and Australia’s inflation, growth rate, and trade balance.