Australian Dollar holds ground ahead of RBA policy decision
AUD/USD regains ground after registering modest losses the previous day, trading around 0.7060 during Asian hours on Tuesday. The pair gains as the Australian Dollar (AUD) remains stronger ahead of the Reserve Bank of Australia's (RBA) interest rate decision later in the day.
The Australian Dollar (AUD) held its ground on Tuesday ahead of the Reserve Bank of Australia's (RBA) policy decision. The AUD/USD pair traded around 0.7060 during Asian hours, showing modest gains as the AUD remained stronger. The RBA is widely anticipated to maintain the Official Cash Rate (OCR) at 4.35% for the second consecutive meeting.
The decision, along with the Monetary Policy Statement (MPS) and updated economic forecasts, will be announced at 04:30 GMT, followed by RBA Governor Michele Bullock's press conference at 05:30 GMT. Analysts from Societe Generale note the technical resilience of AUD/USD, highlighting the pair's ability to defend the 200-Day Moving Average (DMA) since June and form higher highs and higher lows on the daily chart, indicating a short-term uptrend.
The AUD/USD pair appreciated as the US Dollar (USD) faced headwinds due to weaker-than-expected July payrolls, leading to a dovish shift in market expectations. This uncertainty in the US market provides a two-sided policy risk for the AUD.
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