The Reserve Bank of Australia leaves rates unchanged for a second meeting, weighing on the Australian Dollar amid softer inflation data.
The Reserve Bank of Australia kept its Official Cash Rate steady at 4.35% for a second consecutive meeting, matching market expectations after weaker-than-forecast second-quarter inflation. AUD/NZD fell to around 1.1960 during Asian trading, paring earlier gains as the decision reinforced a cautious stance.
Investors are now focused on the RBA’s August Statement on Monetary Policy for updated inflation and growth projections. Analysts suggest the guidance will shape expectations for the bank’s hawkish bias and the Australian Dollar’s carry appeal through year-end.
Across the Tasman, rising oil prices and upcoming New Zealand inflation data add to regional uncertainty, with markets monitoring the RBNZ’s next move in September.