• AUD/USD remained firm on Wednesday, holding onto the gains made during Tuesday’s session after the Reserve Bank of Australia (RBA) surprised markets by leaving its cash rate unchanged.
• The decision defied expectations of a potential cut, signaling a more patient approach from policymakers amid still-elevated inflation and mixed economic signals.
• In a key speech on Wednesday, RBA Deputy Governor Andrew Hauser avoided discussing monetary policy, providing no fresh guidance. This left markets focused on Tuesday’s surprise rate hold and its potential implications.
• Meanwhile, Investor focus turned to the U.S., where trade tensions intensified after President Trump ruled out any extensions to the August 1 tariff deal deadline, dampening market optimism and heightening uncertainty over measures like trans-shipment tariffs.
• Immediate resistance is located at 0.6588(23.6%fib), any close above will push the pair towards 0.6604(Higher BB).
• Support is seen at 0.6484(38.2%fib) and break below could take the pair towards 0.6443(Lower BB).
Recommendation: Good to buy around 0.6520 with stop loss of 0.6440 and target price of 0.6620
