AUD/USD Pauses Ahead of RBA Decision Amid Weaker US Jobs
The Australian dollar paused near 0.7060 against the US dollar on Monday as markets waited for Tuesday's Reserve Bank of Australia decision.
The cash rate is widely expected to remain at 4.35%, following earlier increases from 3.60% in 2026, while the accompanying Statement on Monetary Policy will deliver updated forecasts and Governor Michelle Bullock will speak soon after.
In the US, July nonfarm payrolls showed a decline of 23,000 jobs versus expectations for an 80,000 rise, tempering September Federal Reserve hike expectations ahead of Wednesday's Consumer Price Index release.
With the RBA decision looming, traders are advised to focus on short-term implied volatility and consider buying straddles or strangles on the AUD/USD pair prior to Governor Bullock's press conference.