The Reserve Bank of Australia maintains rates but signals potential tightening, lifting AUD/USD to 0.7070 as traders await US policy cues.
The Australian Dollar climbed against the US Dollar after the Reserve Bank of Australia kept its cash rate unchanged at 4.35% but adopted a hawkish stance. AUD/USD rebounded to 0.7070 from an intraday low, reflecting market expectations of prolonged tight policy.
The RBA’s decision followed its May meeting, where it last raised rates by 25 basis points. Analysts had anticipated a hold, but the accompanying statement emphasized inflation risks, contrasting with recent dovish pivots from other central banks.
Traders are now shifting focus to the Federal Reserve’s upcoming policy announcement, which could influence the currency pair’s next moves.