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Australian dollar holds just above 0.7000 vs the US dollar ahead of RBA
FXStreet says AUD/USD is near its lowest level since August 4, as markets await an RBA decision widely expected to lift the Official Cash Rate by 25 bps.
The Australian dollar was consolidating just above 0.7000 versus the US dollar during Tuesday’s Asian session, according to FXStreet, with the pair trading near its lowest level since August 4.
FXStreet said expectations are centered on the Reserve Bank of Australia’s decision, which the market widely anticipates will raise the Official Cash Rate by 25 basis points after two prior meetings where rates were kept unchanged.
The focus will also be on the RBA’s Monetary Policy Statement and Governor Michele Bullock’s comments at the post-meeting press conference, as investors look for clues on the future policy path that could influence AUD/USD.
FXStreet added that any hawkish reaction in Australia may be capped by a stronger near-term US dollar backdrop, with markets pricing a higher chance of another Federal Reserve rate hike in October and energy linked inflation keeping US bond yields at multi-year highs.