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AUD/USD steadies in the mid-0.7100s after hawkish RBA minutes
RBA minutes flagged upside inflation risks and possible further hikes, while a softer USD was supported by reports Treasury may boost longer-dated bond buybacks by at least double.
AUD/USD was steady around the mid-0.7100s on Tuesday, after recovering most of the previous day’s modest losses, FXStreet reported.
The rebound followed the Reserve Bank of Australia’s (RBA) July meeting minutes, which read as a hawkish hold. Several board members said another rate hike may still be needed if inflation risks stay tilted to the upside, citing rising oil prices, broad cost pass-throughs, and the data center boom.
FXStreet also pointed to a softer US Dollar as a floor under the pair, amid reporting that the US Treasury may at least double longer-dated bond buyback operations. The outlet added that escalated Iran sanctions have contributed to market unease and could affect the USD outlook.
Technically, FXStreet noted AUD/USD traded around 0.7160 on the 4-hour chart, holding above the 20-period SMA near 0.7149 and the 100-period SMA near 0.7081. It said immediate resistance sits near 0.7167 and that a break above could extend the recovery, while initial support is clustered around 0.7154, 0.7143, and 0.7138, ahead of an event-driven next test on Wednesday’s Australia July CPI.