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Australian dollar holds steady after RBA minutes signal rate flexibility
AUD/USD traded around 0.7150 as RBA minutes reiterated that further hikes depend on evidence inflation is returning to target.
The Australian dollar firmed after the Reserve Bank of Australia released the minutes from its July monetary policy meeting, with AUD/USD trading around 0.7150 in Asian hours on Tuesday, according to FXStreet.
The RBA board signaled it is still prepared to hike rates if upside inflation risks emerge, while also weighing potential downside risks. It concluded it has time to assess incoming data before further policy moves, emphasizing that clear evidence of sustained progress is needed for inflation to return to its target band.
FXStreet also pointed to pressure on the US dollar, citing a US Treasury plan to double buyback operations for longer-dated bonds, along with reports that Treasury Secretary Scott Bessent could draw up to $1 trillion from the Treasury General Account to fund the repurchases.
With geopolitical tensions in focus, traders were also watching a heavy US data and policy calendar this week, including consumer confidence, Wednesday’s PCE price index, and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium, which is expected to shed light on the near term dollar outlook. BNY strategists said attention stays on Bessent and Jackson Hole as markets look for volatility to remain contained until then.