Australian Dollar dips after RBA's on-hold decision as traders eye post-meeting presser

The Australian Dollar slipped below the 0.7000 mark following the Reserve Bank of Australia (RBA) announcement, even though they maintained their policy decision. The RBA decided to leave the Official Cash Rate (OCR) unchanged, which was anticipated. In their statement, the bank noted that the recent Middle East conflict had a smaller impact on inflation than expected.

This news disappointed those who had been optimistic about the AUD, and a small rise in the US Dollar (USD) added to the pressure on the AUD/USD pair. Despite this, the RBA stated that inflation would not return to the midpoint of their target range until late 2027, with potential upside risks. They added that they would take further action if needed to bring inflation back to target, including raising the cash rate target.

This discourages traders from betting on AUD and supports its value ahead of the post-meeting press conference. Traders are also waiting for the release of the latest US inflation figures, the Consumer Price Index (CPI) and Producer Price Index (PPI) on Wednesday and Thursday respectively. Additionally, developments related to the Middle East crisis could influence the USD and give some boost to the AUD/USD pair.

Despite this, the price remains close to the highest point since June 16, which was reached last Friday. The AUD/USD pair is currently between the 100-day Simple Moving Average (SMA) at 0.7053 as immediate resistance and the 200-day SMA at 0.6928 as long-term support, resulting in a neutral near-term bias. A daily close above the 100-day SMA could open the path for a stronger recovery, making that level a crucial pivot for the next upward movement.

Conversely, a drop back towards the 200-day SMA could show a weakening of bullish pressure and expose the broader range floor below.