Anna 
The Australian Dollar (AUD) fought to recover from intraday losses, aiming to transition into positive territory on Wednesday. The volatile performance of the ASX 200 index possibly provided support to the AUD, thereby strengthening the AUD/USD pair. However, the resilient US Dollar exerted downward pressure on the pair, limiting its upward momentum.
On Tuesday, the Reserve Bank of Australia (RBA) opted to keep interest rates steady at a 12-year high of 4.35% for the third consecutive meeting. RBA Governor Michele Bullock underscored the ongoing battle against inflation, acknowledging the persistence of high inflation levels. However, she refrained from providing specific details regarding potential adjustments to interest rates, maintaining a stance of openness to various possibilities.
Meanwhile, the US Dollar Index (DXY) continued its recent upward trend, which commenced last Thursday. The US Dollar’s strength is attributed to improved US Treasury yields. Investors are eagerly awaiting the interest rate decision from the US Federal Reserve (Fed) scheduled for Wednesday. The Federal Open Market Committee (FOMC) is widely expected to maintain the key federal funds interest rate within a range of 5.25% to 5.5%.
