The Australian Dollar remains range-bound as RBA inflation warnings offset geopolitical risks and a softer USD.
The AUD/USD pair trades steady around 0.7050 in Asian hours, failing to extend its recent rebound from June 5 highs. The Reserve Bank of Australia’s hawkish stance, with Governor Michele Bullock warning of persistent inflation risks, supports the currency.
The US Dollar’s rebound stalled as moderating inflation data reduced expectations of an immediate Fed rate hike. However, geopolitical tensions, including US-Iran standoffs over the Strait of Hormuz, limit the pair’s upside by bolstering safe-haven demand for the USD.
Investors await further catalysts before committing to a breakout, with focus shifting to upcoming US economic data for directional cues.