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AUD/USD holds near 0.7050 as Fed hike bets cool and RBA stays hawkish
The Australian dollar is supported by an RBA message that rates could be lifted again if inflation progress stalls, even as US PPI and jobless claims are set to move the dollar later.
The AUD/USD pair was steady in the Asian session, trading around 0.7050 after stalling a retracement from its June 5 high, according to FXStreet.
FXStreet said the US dollar struggled to extend a rebound on signs that US inflation is moderating, which has tempered expectations for an immediate Fed rate hike. At the same time, FXStreet pointed to a hawkish Reserve Bank of Australia stance as a tailwind for the Australian dollar, with RBA Governor Michele Bullock indicating there are still upside risks to inflation and that the board is prepared to raise rates again if price pressures do not fall enough.
FXStreet also noted that market attention remains on oil-linked inflation risks tied to the US-Iran standoff, with geopolitical uncertainty keeping safe-haven demand on the dollar while capping AUD/USD.
Looking ahead, FXStreet said traders will focus on the US economic calendar, including the release of Producer Price Index data and Weekly Initial Jobless Claims, plus speeches from FOMC members, which are expected to shape dollar demand later in the North American session. Technically, FXStreet said the pair has a mildly bullish near-term bias near the 100-day simple moving average around 0.7056, but caution is warranted until there is clearer follow-through buying, while a close below that level could expose recent lows near 0.7000 to 0.6950.