The Australian Dollar strengthens ahead of the Reserve Bank of Australia’s expected hold on rates at 4.35% today.
AUD/USD climbs to around 0.7060 in Asian trading, recovering from prior losses as the Australian Dollar firms ahead of the RBA’s policy announcement. The central bank is widely anticipated to maintain the Official Cash Rate at 4.35% for a second consecutive meeting, with the decision due at 04:30 GMT.
Markets have priced in a steady rate, following the RBA’s last hold in June. The Monetary Policy Statement and updated economic forecasts will accompany the decision, with Governor Michele Bullock’s press conference set for 05:30 GMT. Societe Generale analysts note technical resilience, citing a short-term uptrend after the pair defended its 200-day moving average in June.
The US Dollar’s recent weakness, driven by softer-than-expected July payrolls data, has also supported the AUD/USD pair. The labor report prompted a dovish repricing of Federal Reserve rate expectations, adding two-sided policy risk to markets previously skewed toward a prolonged hold.