The Reserve Bank of Australia (RBA) continues to implement a tight monetary policy by maintaining the interest rate at 4.35%, while other central banks in the G10 group have just begun to lower their rates. The RBA has signaled that it will continue to keep the interest rate unchanged.

During the meeting, RBA Governor Bullock and the committee discussed a potential interest rate hike. The central bank remains focused on inflation and is concerned about the implications of lowering the interest rate.

The difference between the Federal Reserve's (Fed) monetary policy and the RBA's hawkish stance could support the AUD/USD exchange rate in the coming months. However, concerns about the slowdown in the Chinese economy might hinder the appreciation of the Australian dollar.

Source: Fxstreet

______________________________