The recent RBA decision and the price action in the technical chart show potential buying pressure in the AUDUSD price. Meanwhile, the US Dollar Index (USDX) remains at the support line with corrective pressure, which might provide a chance for AUD bulls.
RBA Decisions On Australian Economy
The Reserve Bank of Australia's (RBA) latest decision to maintain the official cash rate (OCR) at 4.35% has bolstered confidence among investors in the Australian dollar. The Reserve Bank of Australia (RBA) highlighted that it would not be easing policy quickly and expected domestic inflation to continue to be high. Rather than June 2026 as previously predicted, both trimmed-mean and headline CPI inflation are now predicted to cross the low end of the 2-3% range by late 2026.
RBA Governor Michele Bullock highlighted that rate reductions are not imminent during her press conference, pointing out that it is premature to anticipate them. The Board has discussed raising interest rates.
In her most recent remarks, Governor Bullock reaffirmed the bank's willingness to hike interest rates to combat inflation, retaining a hawkish posture as long as core inflation stays high. She emphasized the bank's attention to inflation risks after the rate-stay decision. By late 2025, core inflation—which was 3.9% in the previous quarter—should drop to the intended range of 2% to 3%.
