AUD/USD forecast: Aussie Dollar stays weak after RBA meeting minutes
The Australian Dollar (AUD) stayed lower near 0.6519 against the US Dollar (USD) on July 22, following the release of the RBA meeting minutes. The Reserve Bank of Australia (RBA) signaled that more interest rate cuts might be needed in the future. However, the board prefers to wait and watch how inflation behaves before making further moves.
The RBA also mentioned that making three rate cuts in just four meetings would not be seen as a “gradual” approach. This cautious tone added pressure on the AUD/USD pair, keeping the Aussie dollar weak in the market.
Globally, rising uncertainty around the US-China tariff deadline on August 1 is also affecting trader sentiment. With the US Dollar gaining strength and investors watching trade talks closely, the Australian Dollar has struggled to recover.
From a technical analysis point of view, AUD/USD is trading below its nine-day moving average of 0.6524. A key support level lies at 0.6493. If the pair breaks this support, it could fall toward its recent low near 0.6454.
Impact:
AUD/USD might remain under selling pressure if global tariff risks rise and the RBA stays cautious. Breaking key support could possibly lead to further downside movement.