{"id":14503,"date":"2024-08-07T10:07:41","date_gmt":"2024-08-07T10:07:41","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14503"},"modified":"2024-08-07T10:07:41","modified_gmt":"2024-08-07T10:07:41","slug":"australian-dollar-rises-on-hawkish-hold-from-the-rba","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/australian-dollar-rises-on-hawkish-hold-from-the-rba\/","title":{"rendered":"Australian dollar rises on hawkish hold from the RBA\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong>\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Australian dollar rises to near one-week high.\u00a0<\/li>\n\n\n\n<li>RBA maintains its cash rate at 4.35% but remains hawkish on inflation.\u00a0<\/li>\n\n\n\n<li>The US Federal Reserve expected to cut interest rates more aggressively.\u00a0<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>This article is a follow up to: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/australian-and-new-zealand-dollars-face-pressure-from-us-growth-concerns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Australian dollars face pressure from US growth concerns<\/a>\u00a0<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Australian dollar (symbol: AUDUSD) hit a near one-week high as investors continued to weigh the implications of the latest Reserve Bank of Australia (RBA) monetary policy decision. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Aussie also benefited from expectations that the US Federal Reserve will cut interest rates more aggressively in the coming months.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/Image-71-1-1024x466.jpg\" alt=\"A 15-minute candlestick chart for AUDUSD-ECN displaying a positive trend of 0.66%. Key details: Open at 0.65182, Close at 0.65615, High at 0.65684, and Low at 0.65095. The chart includes 5, 10, and 30-period moving averages, and a MACD indicator (12, 26, 9) at the bottom.\n\nThe price action shows a strong bullish movement, with candles consistently closing above the moving averages, indicating a steady upward trend. The MACD indicator displays a bullish crossover with the MACD line moving above the signal line, and the histogram showing positive bars, suggesting increasing buying momentum. \" class=\"wp-image-14506\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: AUDUSD rises on hawkish hold from the RBA, as observed on the new and updated <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets app<\/a>.<\/em>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The RBA held the cash rate steady at 4.35% for the sixth consecutive meeting, as widely anticipated. However, the central bank issued a stern warning that inflation remains too high, indicating that a rate cut is not on the table in the near term. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This hawkish stance was seen as supportive for the Australian dollar as it suggests continued efforts to control inflation, which can attract foreign investment and boost currency value.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related article:<\/strong> <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\" target=\"_blank\" rel=\"noreferrer noopener\">Interest rate tug-of-war: Hawkish vs dovish<\/a>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The RBA highlighted a stronger outlook for domestic demand, driven by higher public spending and a recovery in household consumption. This optimism about domestic demand further supported the Australian dollar.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The hopes of millions of struggling Australians desperate for rate relief have been dashed as the RBA has held the cash rate at 4.35 per cent.<a href=\"https:\/\/t.co\/t6OdbaYGZh\">https:\/\/t.co\/t6OdbaYGZh<\/a><\/p>&mdash; Sky News Australia (@SkyNewsAust) <a href=\"https:\/\/twitter.com\/SkyNewsAust\/status\/1820679483831288046?ref_src=twsrc%5Etfw\">August 6, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, one point to note is that the Australian industry index has remained contractionary for the 27th consecutive month in July, indicating ongoing challenges in both domestic and external demand.&nbsp;<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>An overall strong position thanks to the RBA<\/strong>&nbsp;<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The hawkish tone from the RBA, coupled with expectations of aggressive rate cuts by the US Federal Reserve, suggests a favourable environment for the Aussie. Traders should monitor upcoming economic data and RBA statements for further cues on interest rates and economic conditions.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite a prolonged contraction in the Australian industry index, the overall positive outlook from the RBA provided a bullish sentiment for the Australian dollar.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and <\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian dollar appreciates to near one-week high after RBA maintains cash rate at 4.35% and warns inflation remains high. US Fed rate cuts also influence the Aussie.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[39,28,18],"class_list":["post-14503","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-aussie","tag-dollar","tag-policy"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14503"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14503\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}