RBA Holds Steady: AUD/USD's Next Move Hinges on Global Risk

The Reserve Bank of Australia (RBA) kept interest rates steady at 4.35% in its March meeting, a decision widely expected by markets.

This hawkish hold provides some support for the Australian dollar, as it suggests the RBA is in no rush to cut rates.

The medium-term outlook for the AUD/USD pair is tied to two key factors: the divergence between RBA policy and the U.S. Federal Reserve, and the health of the Chinese economy, Australia's largest trading partner.

If commodity prices remain elevated, the currency could find support even if the RBA's policy stance remains unchanged.