AUD/USD Rangebound as RBA Holds Hawkish Bias

The Australian Dollar (AUD) has been trading in the upper end of its recent range against the US Dollar, breaking above the key 0.7200 hurdle last week.

As the Reserve Bank of Australia (RBA) maintains a hawkish bias and inflation remains sticky, the AUD/USD pair has gained momentum since early July.

The RBA's cautious stance on interest rates is likely to continue, with investors anticipating a tightening of less than 4 basis points by year-end.

Meanwhile, China's economy has been stabilizing rather than growing, with its trade balance showing a strong recovery and retail sales expanding modestly.