AUD/USD: Australian Dollar Holds Near 0.71 as RBA Stays Hawkish
- AUD/USD remains firm: The Australian dollar is holding close to the 0.71 area after the RBA kept rates unchanged.
- RBA remains cautious: Policymakers retained a hawkish tone and warned that inflation remains elevated.
- U.S. CPI is next: Wednesday's inflation data could determine whether AUD/USD breaks higher or retreats from resistance.
AUD/USD Fundamental Analysis
AUD/USD is entering a potentially important week after the Reserve Bank of Australia kept its cash rate at 4.35% on August 11. The decision was widely anticipated, but the accompanying message was more important for currency traders. The RBA maintained a cautious stance toward inflation and indicated that further tightening could still be considered if upside inflation risks materialize.
Australia's inflation outlook remains the central reason behind the RBA's cautious approach. While recent data have reduced expectations for an immediate rate increase, policymakers continue to see inflation as too high and expect it to take considerable time to return sustainably toward the target range.
That gives the Australian dollar an important yield-support argument. If the RBA remains reluctant to ease policy while the Federal Reserve moves closer to a softer stance, the interest-rate differential could eventually become more supportive of AUD/USD.
However, the U.S. dollar remains the other half of the equation. The latest U.S. employment figures were weaker than expected, increasing uncertainty over the Federal Reserve's next steps. The upcoming U.S. CPI report is therefore critical. A softer reading could weaken the dollar and give AUD/USD room to extend its rally, while a hotter inflation number could revive U.S. rate expectations and pressure the Australian dollar.
China is another factor worth monitoring because Australia's economy remains highly sensitive to Chinese demand for commodities. Any improvement in China's growth outlook would provide an additional fundamental tailwind for the Aussie.
AUD/USD Technical Analysis
AUD/USD is hovering around the 0.71 region, with traders watching whether the pair can convert its recent advance into a confirmed breakout. The pair has been consolidating near a major moving-average area, creating a clear technical decision zone.
The first important resistance is around 0.7120–0.7150. A sustained break above this zone would strengthen the bullish structure and could open the way toward 0.7200.
On the downside, 0.7050–0.7030 is the first important support area. A break below that zone would suggest that the recent rally is losing momentum and could expose the psychological 0.7000 level.
The technical picture is therefore cautiously bullish while AUD/USD remains above 0.70, but the pair needs a decisive break above 0.7120–0.7150 to confirm that buyers are ready to take control.
EUR/USD holds 1.1414 before the ECB decision: three scenarios
EUR/USD traded near 1.1414 before the ECB’s July decision. Here is what a hold, hawkish hold or surprise hike could mean for 1.1350 and 1.1480.
Alphabet falls to $329.71 premarket as AI spending eclipses cloud growth
Alphabet traded near $329.71 premarket after strong Q2 revenue and cloud growth collided with a much larger AI spending plan. What investors need to watch.
How Liquidity Affects Day Trading Results
When I first started trading day trading, I believed success was all about finding the perfect indicator. I spent weeks testing moving averages, RSI settings, support and resistance levels, and dozens of YouTube strategies that promised easy wins. Some worked for a few trades, but most failed. What confused me was that the same setup […]
IQ Option vs Deriv Chart Comparison
The Night I Realized My Charts Were Lying to Me It was three in the morning, the exact hour when the market looks either like a goldmine or a psychological hazard. I was sitting in front of two monitors, a lukewarm mug of coffee in hand, watching a critical support level on EUR/USD. On my […]
Binomo Demo vs Real Account: What Changes After You Deposit (KYC, Payout, Support, Limits)
I spent far too long thinking my Binomo demo results meant I was “ready.” On demo, everything felt clean. My entries looked sharp. My timing looked better than it probably was. I could reset virtual balance, test ideas, and convince myself I had control. Then I made my first real deposit, and that’s when I […]
WTI reaches $89.43 as Brent clears $95 on renewed supply risk
WTI traded near $89.43 while Brent moved above $95 as Middle East shipping risk lifted crude for a fifth session. Key levels, catalysts and invalidation.