AUD Holds Near Weekly High After RBA Holds Rates at 4.10%

The Reserve Bank of Australia (RBA) decided to keep interest rates at 4.10% in its May meeting, marking the fourth consecutive pause.

This move was widely expected by markets, and as a result, the Australian Dollar (AUD) is trading near its weekly high against the US Dollar (USD), around the 0.6650 level.

The RBA's decision to hold rates steady reflects a cautious stance, with inflation moderating but still above its 2-3% target band.

Although the Fed has signaled potential rate cuts later this year, the RBA remains willing to raise rates again if inflation proves sticky, providing support for the AUD.