RBA: Watchful of risks in both directions – Standard Chartered

💡 DMK Insight

The RBA’s decision to hold the cash rate at 3.60% signals a cautious stance amid economic uncertainty, and here’s why that matters for traders right now. With inflation still a concern, the RBA’s reluctance to ease policy could maintain upward pressure on the Australian dollar. Traders should watch for potential volatility in AUD pairs, especially against the USD, as market sentiment adjusts to this news. If the RBA continues to signal a hawkish tone, we might see the AUD/USD testing resistance levels near recent highs. Conversely, if economic data starts to show signs of weakness, a shift in policy could be on the horizon, impacting not just the AUD but also commodities linked to the Australian economy, like gold and iron ore. Keep an eye on upcoming economic indicators, particularly employment and inflation data, as they could sway the RBA’s future decisions and market reactions significantly.