AUD/USD Price Forecast: RBA Hike Seen as Likely Last

The Australian Dollar (AUD) has gained ground against its major peers, but remains almost flat against the US Dollar (USD). The Reserve Bank of Australia (RBA) is seen as likely to hold rates for an extended period after hiking the Official Cash Rate (OCR) four times this year.

Australia's trade surplus narrowed significantly in August, reaching AUD$495 million. This marks a sharp decline from the previous reading of A$1,351M and a revised lower figure from A$1,923M.

Investors are awaiting the US ISM Manufacturing PMI data for September, which will be published at 14:00 GMT. The AUD/USD price is currently trading at 0.6948, with immediate support seen at the 78.6% Fibonacci retracement at 0.6947.

The RBA's decision to hold rates has been interpreted as a sign that they may be done with rate hikes. This view was echoed by Standard Chartered Global Research, who noted that Governor Bullock struck a dovish tone in the press conference, emphasizing the lags of monetary policy transmission from previous rate hikes.