AUD/USD strengthens above 0.6800 with RBA policy on the horizon

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AUD/USD strengthens above 0.6800 with RBA policy on the horizon
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The AUD/USD pair gains momentum above 0.6800 in Monday's European session as the Australian Dollar outperforms its major peers ahead of the Reserve Bank of Australia's (RBA) monetary policy decision due Tuesday. While traders anticipate an unchanged Official Cash Rate (OCR), investors await fresh guidance on interest rate projections for the remainder of the year.

AUD/USD strengthens above 0.6800 with RBA policy on the horizon. The RBA is expected to leave interest rates unchanged on Tuesday. The US Dollar recovers amid growing uncertainty over the Fed’s interest rate outlook. The AUD/USD pair performs strongly above 0.6800 in Monday’s European session. The Aussie asset gains as the Australian Dollar outperforms its major peers ahead of the Reserve Bank of Australia’s monetary policy decision, which will be announced on Tuesday.

The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD.

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