AUD Steady Amid RBA Deliberations as USD Faces Downward Pressure

The Australian Dollar (AUD) remains steady following the recent Reserve Bank of Australia (RBA) Meeting Minutes. While some RBA members expressed concern about rising risks driven by factors such as oil prices and broad cost-pressure pass-throughs, others pointed to offsetting downside risks. The RBA board concluded that it has time to evaluate incoming data before making further policy moves, emphasizing the need for clear evidence of sustained progress.

The US Dollar (USD) is facing downward pressure against major currencies, including the AUD, following the US Treasury's decision to double its buyback operations for longer-dated bonds. This move could see up to $1 trillion tapped from the Treasury General Account to finance these repurchases.

Geopolitical tensions are escalating as the US expands secondary sanctions targeting entities trading with Iran. Treasury Secretary Scott Bessent warned that a major financial institution could face enforcement action this week and noted that Chinese entities will not be exempt.