Australian Dollar flat above 0.7050 vs USD, close to June 16 peak as traders await RBA
The AUD/USD pair enters a bullish consolidation phase at the start of the new week as traders opt to move to the sidelines ahead of the crucial Reserve Bank of Australia (RBA) meeting on Tuesday.
The Australian Dollar (AUD) stabilizes near 0.7050 against the US Dollar (USD) as market participants await the Reserve Bank of Australia's (RBA) meeting. This period of consolidation comes after the pair hit a recent six-month high on Friday. Analysts at Rabobank note that while three interest rate hikes since the beginning of the year may address excess demand, they are unsure whether it is sufficient.
Recently released data from China indicates a slowdown in both annual consumer inflation and producer price inflation, which could weigh on the AUD. Geopolitical tensions, including attacks by Iran-backed Houthi militants targeting Saudi energy infrastructure, also support the greenback. Meanwhile, US inflation data will play a key role in determining the USD's strength, potentially capping the AUD/USD pair.
Technical analysis suggests the AUD/USD pair could rise towards the 0.7114 level, but a deeper drop may expose a support level around 0.6864.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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