AUD Dips After RBA Holds Rates Steady Amid Disappointing Inflation Outlook

The Australian Dollar (AUD) took a dip after the Reserve Bank of Australia's (RBA) decision to hold interest rates steady. The RBA had signaled that it would keep rates unchanged, and its statement reinforced this expectation. While investors had anticipated this outcome, they were disappointed by the central bank's assessment that inflation will not return to target until late 2027.

The AUD/USD pair slid below mid-0.7000s in reaction to the RBA's decision. However, spot prices remain within striking distance of their highest level since June 16. The technical analysis suggests that the pair is caught between resistance at the 100-day Simple Moving Average (SMA) and support from the 200-day SMA.

Investors are now looking ahead to the upcoming US inflation figures, which could provide more insight into the global economic outlook. Meanwhile, developments surrounding the Middle East crisis may also impact the USD and influence the AUD/USD pair.