11.08.202502:49:09UTC+00Aussie Dollar Steady as RBA Decision Looms

On Monday, the Australian dollar remained stable around $0.652 as investors turned their attention to the Reserve Bank of Australia's upcoming monetary policy decision scheduled for Tuesday. The general market consensus anticipates a 25 basis point reduction in the interest rate to 3.60% for the August meeting. This expectation is driven by lower-than-forecast Q2 inflation figures and the unemployment rate climbing to its highest point in three and a half years. This follows the RBA's unexpected choice in July to maintain the cash rate at 3.85%, which was based on a more balanced view of inflation risks and the labor market's enduring strength. However, uncertainty lingers as RBA Governor Michele Bullock reiterated that the central bank has ceased issuing forward guidance, underscoring that rate decisions are determined solely by the board and cannot be predicted beforehand. On an international scale, the Australian dollar received some support due to a weakening US dollar, influenced by the anticipation of Tuesday's US inflation data and the upcoming August 12 deadline for the US-China tariff truce.