Traders pause ahead of Tuesday’s RBA meeting as the Australian Dollar consolidates near a June 16 high.
The AUD/USD pair remains steady above 0.7050 in early European trading, near its highest level since June 16. Market participants are adopting a cautious stance ahead of the Reserve Bank of Australia’s rate decision on Tuesday, limiting significant moves in the currency pair.
Analysts note the RBA has raised rates three times this year but remain skeptical the tightening is sufficient to curb excess demand. The central bank may pause to assess the impact of prior hikes, though uncertainty persists. Weak Chinese inflation data over the weekend has also weighed on the antipodean currencies, adding pressure to the AUD.
The US Dollar’s modest rebound and geopolitical uncertainties have further capped gains in the AUD/USD pair, despite a brief reaction to Friday’s softer US jobs report.