AUD Poised for Eight-Week High Ahead of RBA Decision

The Australian dollar (AUD) has been steadily rising and is now approaching an eight-week high as investors await the Reserve Bank of Australia's monetary policy decision on Tuesday.

The central bank is expected to keep its cash rate unchanged at 4.35% for a second straight meeting, with policymakers maintaining a hawkish stance due to elevated inflation.

Markets are pricing in around a 50% probability of another 25-basis-point rate hike by year-end, and traders will closely watch the RBA's updated forecasts and Governor Michele Bullock's comments for clues on future policy.