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RBA keeps policy steady, Societe Generale flags AUD/USD upside limits
Societe Generale expects the Reserve Bank of Australia policy path to keep the AUD capped, with support seen near 0.6980 and resistance between 0.7120 and 0.7275.
Societe Generale strategist Kenneth Broux said the Australian Dollar faces ongoing upside pressure against the US Dollar after the Reserve Bank of Australia removed one projected rate hike from its outlook. The cash rate remains at 4.35%, and the policy rate is forecast to be around 4.40% through 2028, a setup that could weigh on AUD/USD.
FXStreet also noted that the RBA update, alongside lower inflation forecasts reflected in the bank’s SMP, is expected to dampen volatility in the AUD/USD pair. The focus for traders, according to the same view, is technical levels around 0.6980 for support and 0.7120 plus 0.7200 to 0.7275 for resistance.
The note did not provide a specific AUD/USD call, but it framed the rate-path change as a reason the pair’s upside could remain limited while investors monitor how the RBA’s broader projections evolve.