AUD Soars to Highest Level Since May as RBA Maintains Tightening Bias

The Australian Dollar (AUD) continues to move higher, reaching its highest level since mid-May. The AUD/USD pair has broken through the 0.7240 region and is now trading near the 0.7200 mark.

Supporting this move upwards is the Reserve Bank of Australia's (RBA) hawkish policy bias, as well as domestic inflation that remains above target. The RBA left its Official Cash Rate unchanged on August 11 but maintained a tightening bias, citing above-target inflation and upside risks to the outlook.

The Australian economy has been showing signs of resilience, with data pointing to slower but positive growth. Inflation remains a concern, however, and the RBA expects it to return to target only in early 2028.