The Australian Dollar (AUD) is poised to continue its upward trend against the US Dollar (USD) after the Reserve Bank of Australia (RBA) indicated in its August Meeting Minutes that the cash rate is likely to remain unchanged for an extended period.
The RBA considered a rate hike but ultimately decided to maintain current rates to balance risks. They also ruled out a rate cut in the near future, providing further support to the AUD/USD pair.
Meanwhile, the US Dollar may find support as traders remain cautious ahead of the release of the FOMC Minutes on Wednesday and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday.
Key Market Updates: Australian Dollar Holds Firm After RBA Minutes
- Fed Governor Michelle Bowman warns against hasty policy changes due to inflation risks.
- China explores new measures to boost real estate market with special bonds.
- The People’s Bank of China keeps Loan Prime Rates unchanged, impacting Australian markets.
- Minneapolis Fed President suggests potential US interest rate cuts in September.
- Fed officials emphasize cautious approach to monetary policy adjustments.
- RBA Governor Michele Bullock signals readiness to raise rates to control inflation.
Technical Analysis: Australian Dollar Targets Seven-Month Highs
The AUD/USD pair is currently trading near 0.6750, with a bullish trend supported by an ascending channel on the daily chart. The RSI indicates bullish momentum but warns of potential overbought conditions.
If the pair continues to rise, it could test highs near 0.6798 and 0.6820. Support levels are at 0.6670 and 0.6575.
AUD/USD: Daily Chart
Australian Dollar Price Today
The table below shows the percentage changes of the Australian Dollar (AUD) against major currencies. AUD performed strongest against the Japanese Yen today.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.01% | 0.05% | 0.04% | 0.12% | -0.03% | 0.01% | 0.00% | -0.04% |
| EUR | -0.08% | 0.00% | -0.04% | 0.05% | -0.09% | -0.05% | -0.04% | -0.11% |
| GBP | -0.06% | 0.04% | 0.00% | 0.11% | -0.03% | -0.04% | 0.00% | -0.06% |
| JPY | -0.15% | -0.05% | -0.11% | 0.00% | -0.14% | -0.12% | -0.14% | -0.17% |
| CAD | 0.00% | 0.09% | 0.03% | 0.14% | 0.00% | 0.03% | 0.03% | -0.02% |
| AUD | -0.01% | 0.05% | 0.04% | 0.12% | -0.03% | 0.00% | 0.00% | -0.04% |
| NZD | -0.06% | 0.04% | 0.00% | 0.14% | -0.03% | 0.00% | 0.00% | -0.05% |
| CHF | 0.03% | 0.11% | 0.06% | 0.17% | 0.02% | 0.04% | 0.05% | 0.00% |
FAQs About the Australian Dollar
Get insights into key factors influencing the Australian Dollar (AUD) through these FAQs:
- What factors drive the Australian Dollar?
- How does the Reserve Bank of Australia impact the AUD?
- Why is the Chinese economy crucial for the AUD?
- What role does Iron Ore play in the value of the Australian Dollar?
- How does the Trade Balance affect the Australian Dollar?