AUD/USD Wavers on RBA Decision and US Inflation Report

The Australian dollar (AUD) has been wavering against the US dollar (USD), as investors reflect on the recent Reserve Bank of Australia's interest rate decision and the July US consumer inflation report. The AUD/USD pair was trading at 0.7062, just below this week's high of 0.7090.

The RBA decided to leave interest rates unchanged at 4.35%, even as inflation remained elevated. Michele Bullock hinted that the country's inflation will move towards the 2% target next year and that the bank may not need to hike interest rates again this year.

The AUD/USD pair also wavered after the US released inflation numbers that met analysts' estimates, with the headline CPI dropping to 3.4% in July. This means that the Fed is likely to leave interest rates unchanged for the remainder of the year, and the upcoming Producer Price Index (PPI) report will have a minimal impact on the pair.

Technical analysis suggests that the AUD/USD pair may have a bearish breakout in the near term, with the next target being the psychological level of 0.7000. A drop below this level would point to more downside to 0.6950.