AUD/USD Consolidates Near Lows Ahead of RBA Rate Decision

The Australian Dollar has been consolidating above the 0.7000 mark against the US Dollar in the Asian session, holding near its lowest level since August 4 ahead of the Reserve Bank of Australia's interest rate decision.

The RBA is widely expected to raise the Official Cash Rate by 25 basis points after keeping rates unchanged at its previous two meetings, with investors looking for cues on the future policy path in the accompanying Monetary Policy Statement and Governor Michele Bullock's comments at the post-meeting press conference.

A positive reaction to a hawkish RBA outlook would likely be limited due to the prevailing bullish sentiment surrounding the US Dollar, which has been driven by the possibility of another interest rate hike by the Federal Reserve in October amid energy-driven inflationary concerns and geopolitical uncertainties keeping the US Dollar near a two-month high.