AUD/USD Supported by RBA's Tighter Policy Stance Amid Inflation Concerns
The AUD/USD currency pair has been holding above the crucial support zone of 0.7100, supported by expectations that the Reserve Bank of Australia (RBA) will maintain a tighter policy stance amid persistent inflation concerns.
RBA Governor Michele Bullock has highlighted ongoing upside inflation risks, keeping interest-rate expectations as a key driver for AUD/USD. The upcoming RBA monetary policy decision on 29 September remains the next major catalyst for the Australian dollar.
AUD/USD is consolidating around 0.7120 after a short-term rebound from lower levels. The Australian dollar remains supported as markets expect further policy tightening from the RBA, but upward momentum is limited due to the strong performance of the US dollar following the Federal Reserve's recent rate hike.