Forex
Home›Forex›Major Pairs›AUD/USD slips, constrained by RBA rate-hike doubts
AUD/USD slips, constrained by RBA rate-hike doubts
The Aussie pair trades near 0.7050 after the RBA held its OCR at 4.35%, while markets question how strongly the central bank will tighten further.
The Australian dollar eased against the US dollar, with AUD/USD down 0.17% to around 0.7050 in early European trading, extending a pullback from Wednesday’s two-month high near 0.7090.
FXStreet said the move reflects lingering skepticism about how hawkish the Reserve Bank of Australia will be. The RBA kept its Official Cash Rate unchanged at 4.35% on Tuesday, but stated it would not hesitate to raise rates further due to upside inflation risks, a stance that traders have not fully bought into.
The dollar’s strength also weighed on the pair, as traders trimmed expectations for a hawkish Federal Reserve outcome for the September meeting. Technically, AUD/USD is holding a constructive bias while trading above the 20-day EMA at 0.7024, with the channel top near 0.7077 acting as a near-term cap.
On the downside, initial support sits around the 20-day EMA at 0.7024, followed by the lower boundary of the rising channel near 0.6951 and a deeper floor around 0.6866. A sustained break above 0.7077 could clear the way toward round-level resistance at 0.7100 and the June 5 high at 0.7144, FXStreet added.