Markets await the Reserve Bank of Australia’s policy statement and updated forecasts after holding rates at 4.35% since early 2026.
The Australian Dollar steadies at 0.7060 against the USD as traders brace for the Reserve Bank of Australia’s rate decision. The RBA is expected to leave the cash rate unchanged at 4.35%, following a series of hikes earlier this year that lifted it from 3.60%. The focus will be on whether the central bank signals further tightening or confirms a peak in rates.
The decision accompanies fresh economic forecasts in the Statement on Monetary Policy. Governor Michelle Bullock’s post-meeting remarks may provide additional clarity. Recent US jobs data, which showed a surprise decline of 23,000 jobs in July, has reduced expectations for a Federal Reserve rate hike in September, supporting the AUD.
Wednesday’s US Consumer Price Index report will test this dynamic. A stronger-than-expected print could revive Fed hike bets, pressuring AUD/USD, while a softer reading may reinforce the current range. Technical levels show the pair trading at 0.7063 on the 4-hour chart.