Created
: 2025.07.09
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
AUD/USD recovery stalls below 0.6545 as the market's focus shifts to the Fed
World FX news
Breaking news
AUD/USD recovery stalls below 0.6545 as the market's focus shifts to the Fed
New
2025.07.09 19:27
2025.07.09 19:27
2025.07.09 19:27
- The Aussie recovery stalls below 06545, with downside attempts limited above 0.6500.
- A somewhat brighter market mood has weighed on the safe-haven US Dollar on Wednesday.
- The RBA's hawkish monetary policy decision boosted the Australian Dollar on Tuesday.
The Australian Dollar is posting marginal losses on Wednesday, trading within Tuesday's range, as the positive impact from the hawkish RBA statement wore off, and investors shift their focus to the release of the FOMC minutes.
The risk-averse sentiment seen on previous days, following Trump's announcement of the first batch of tariff letters, appears to have waned on Wednesday, as the new August 1 deadline keeps some hopes of a significant breakthrough alive. This brighter sentiment is supporting the Aussie and weighing on the Safe-haven USD.
The Australian Dollar rallied on Tuesday after the Reserve Bank of Australia surprised markets by keeping its benchmark interest rate unchanged at 3.85%, against market expectations of a 25-basis-point rate cut to 3.6%.
The pair, however, remains unable to break above a previous support, now turned resistance at the 0.6545 area following a nearlu 1.5% fall last week, as Trump's threat of a new round of tariffs hurt investors' confidence in Australia's trade-oriented economy.
The focus today shifts to the minutes of June's Fed meeting, which are expected to provide further insight on the bank's near-term decisions and some additional guidance for US Dollar crosses.
RBA FAQs
The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 meetings a year and ad hoc emergency meetings as required. The RBA's primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also "..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people." Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening.
While inflation had always traditionally been thought of as a negative factor for currencies since it lowers the value of money in general, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Moderately higher inflation now tends to lead central banks to put up their interest rates, which in turn has the effect of attracting more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in the case of Australia is the Aussie Dollar.
Macroeconomic data gauges the health of an economy and can have an impact on the value of its currency. Investors prefer to invest their capital in economies that are safe and growing rather than precarious and shrinking. Greater capital inflows increase the aggregate demand and value of the domestic currency. Classic indicators, such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can influence AUD. A strong economy may encourage the Reserve Bank of Australia to put up interest rates, also supporting AUD.
Quantitative Easing (QE) is a tool used in extreme situations when lowering interest rates is not enough to restore the flow of credit in the economy. QE is the process by which the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the purpose of buying assets - usually government or corporate bonds - from financial institutions, thereby providing them with much-needed liquidity. QE usually results in a weaker AUD.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Reserve Bank of Australia (RBA) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the RBA stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It would be positive (or bullish) for the Australian Dollar.
Last updated
: 2025.07.09
Related articles
President Trump: Our Fed rate is at least 3 points too high
31 minutes agoEUR/USD stalls ahead of Fed Minutes and major US Treasury auction
38 minutes agoBritish Pound flattens against US Dollar amid BoE warnings on global financial risks
58 minutes agoFed Minutes to offer clues on next rate cuts amid tariff turmoil
2025.07.09 22:15EUR/JPY retreats from YTD high amid trade tensions and overbought signals
2025.07.09 22:13JPY flat w/ overnight recovery mirroring spreads - Scotiabank
2025.07.09 21:10
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
President Trump: Our Fed rate is at least 3 points too high
Another round of the White House-Federal Reserve dispute saw President Donald Trump urge the Fed to decrease its interest rate by a minimum of 3 percentage points, reiterating his request for the bank to lower rates to alleviate the cost of servicing the nation's debt.
New
2025.07.09 23:52EUR/USD stalls ahead of Fed Minutes and major US Treasury auction
The Euro (EUR) is trading flat against the US Dollar (USD) on Wednesday as investors turn cautious ahead of key US economic events.
New
2025.07.09 23:45British Pound flattens against US Dollar amid BoE warnings on global financial risks
The British Pound (GBP) flattens against the US Dollar (USD) on Wednesday, halting its three-day losing streak despite a steady Greenback as traders react to the Bank of England's (BoE) latest Financial Stability Report.
New
2025.07.09 23:25Fed Minutes to offer clues on next rate cuts amid tariff turmoil
The Minutes of the United States (US) Federal Reserve's (Fed) June 17-18 monetary policy meeting will be published on Wednesday at 18:00 GMT.
New
2025.07.09 22:15EUR/JPY retreats from YTD high amid trade tensions and overbought signals
The Euro (EUR) is slipping against the Japanese Yen (JPY), easing from its recent year-to-date high of 172.28 reached on Wednesday amid fresh concerns over potential US tariffs targeting Japan.
New
2025.07.09 22:13Silver Price Forecast: XAG/USD marks third daily decline, pressured by firm US Dollar
Silver (XAG/USD) is trading near $36.40 on Wednesday, marking its third consecutive daily decline, as a stronger US Dollar and rising US Treasury yields continue to pressure precious metals.
New
2025.07.09 21:48JPY flat w/ overnight recovery mirroring spreads - Scotiabank
The Japanese Yen (JPY) is entering Wednesday's NA session unchanged against the US Dollar (USD) with an impressive recovery from overnight losses that seemed to primarily reflect movement in the US Treasury market, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.09 21:10GBP quiet ahead of data highlights later in week - Scotiabank
The Pound Sterling (GBP) is entering Wednesday's NA session unchanged vs. the US Dollar (USD), with limited overnight movement reflecting the absence of any major data releases, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.09 21:07US Dollar firm ahead of FOMC meeting minutes
The US Dollar (USD) maintains a firm footing on Wednesday, opening the day with a mildly bullish tone amid lingering tariff tensions and cautious market sentiment.
New
2025.07.09 21:05EUR soft as markets await German/France CPI Thursday/Friday - Scotiabank
The Euro (EUR) is soft and entering Wednesday's NA session marginally lower against the US Dollar (USD), hovering just above the 1.17 level at which it has found support so far this week, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
New
2025.07.09 21:04Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
