AUD/USD Reclaims Key Hurdle as RBA Maintains Hawkish Stance

The Australian Dollar has been on a multi-week recovery streak and has finally reclaimed the key hurdle of 0.7100 against the US Dollar, according to recent data.

This uptrend is driven by several factors, including the Reserve Bank of Australia's (RBA) hawkish stance and steady domestic inflation, which underpin the Aussie during occasional bouts of weakness.

Australia's economy appears healthy and stable, with a solid domestic demand and decent economic growth figures. The RBA has maintained its cautious approach to monetary policy, keeping the possibility of extra tightening on the table.

The labour market remains firm, with an unemployment rate of 4.4% in June, and the employment change increased by 76.3K individuals. However, inflation remains a concern, with the Trimmed Mean forecast at 3.3% in Q4 2026, above 3% until mid-2027.