RBA Holds Steady, Capping Aussie Dollar Gains

The Reserve Bank of Australia's (RBA) decision to maintain its cash rate at 4.35% since November 2023 has limited the Australian dollar's upside against the US dollar, according to ING analysts.

The RBA is balancing inflation control with economic growth, as inflation remains above target but the labor market stays resilient.

Firmer commodity prices have provided some support for the AUD, but without a hawkish pivot from the RBA, its upside potential remains limited.