Key Moments
- AUD/USD trades near 0.6943, with the Australian Dollar up 0.23% against the US Dollar in the Asian session.
- RBA Assistant Governor Sarah Hunter reiterates the central bank’s readiness to act to return inflation to target, after three 25 bps hikes this year.
- Markets look ahead to the FOMC Minutes and China’s June CPI release for further direction.
Australian Dollar Outperforms in Asian Trade
The Australian Dollar (AUD) is trading about 0.23% higher against the US Dollar (USD), lifting AUD/USD to around 0.6943 during the Asian trading session on Wednesday. The currency is outperforming most major peers, with the exception of the New Zealand Dollar (NZD), as traders respond to a policy stance from the Reserve Bank of Australia (RBA) that remains open to further tightening if needed to bring inflation back to its target range.
Intraday Currency Performance Snapshot
The Australian Dollar Price Today section highlights how the AUD has moved against a basket of major currencies, with the Australian unit showing its strongest performance versus the Japanese Yen.
The referenced heat map measures percentage changes between currencies, using the base currency from the left column and the quote currency from the top row. For example, selecting the Australian Dollar as the base on the left and moving horizontally to the US Dollar on the top shows the percentage change for AUD (base)/USD (quote).
| Currency Pair | Performance Highlight |
|---|---|
| AUD/JPY | Australian Dollar was the strongest against the Japanese Yen. |
| AUD/USD | Trades near 0.6943, up 0.23% in the Asian session. |
RBA’s Hunter Reaffirms Inflation Commitment
Earlier in the day, RBA Assistant Governor Sarah Hunter stated that the central bank will take action as necessary to return inflation to target, noting that the recent oil shock has not yet led to a significant slowdown in economic activity.
So far this year, the RBA has implemented three interest rate increases of 25 basis points (bps) each, lifting the Official Cash Rate (OCR) to 4.35%.
Key Data and Events on the Radar
Looking ahead, market participants are awaiting China’s Consumer Price Index (CPI) figures for June, scheduled for release on Thursday. The data are being watched closely given China’s importance as a trading partner for Australia.
At the same time, the US Dollar is trading slightly weaker as investors wait for the Federal Open Market Committee (FOMC) minutes from the June policy meeting, due at 18:00 GMT. Traders aim to glean fresh insight into the Federal Reserve’s (Fed) monetary policy outlook from the minutes.
AUD/USD Technical Overview
AUD/USD is trading around 0.6944 at the time of writing. Despite the intraday gains, the short-term bias is described as mildly bearish, as the pair remains below the 20-period exponential moving average (EMA), currently at 0.6967. The failure to reclaim this nearby EMA is seen as a sign that upside moves are still constrained.
The Relative Strength Index (RSI) stands at 42.75, below the neutral 50 level, indicating subdued but not excessive selling pressure.
| Level | Price | Comment |
|---|---|---|
| Spot (around press time) | 0.6944 | Trading higher on the day |
| 20-period EMA | 0.6967 | Immediate resistance; recovery needs a break above |
| Support – June 30 low | 0.6865 | Key downside level; break would signal further weakness |
| Support – March 30 low | 0.6833 | Next target if 0.6865 fails |
On the upside, a decisive move above the 20-period EMA at 0.6967 is seen as necessary to tilt the near-term outlook toward recovery and potentially pave the way for a more durable rebound. On the downside, the June 30 low at 0.6865 acts as a key support area; a break below that level would expose additional weakness toward the March 30 low at 0.6833.
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