RBA Holds Cash Rate at 4.35% as Markets Await US CPI Data

The Reserve Bank of Australia kept its cash rate unchanged at 4.35% in a widely expected decision, maintaining a hawkish tone in its accompanying statement, a stance analysts say was necessary to help manage inflation expectations. The Australian dollar wobbled following the hold, with AUD/USD facing uncertainty ahead of the next major catalyst: a closely watched US consumer price index release. Elsewhere in currency markets, the Japanese yen steadied after fading gains from a recent intervention-driven boost, while the euro found its upside capped below key resistance against the US dollar, according to UOB analysis.

Asian currency markets and the broader dollar were broadly muted as traders positioned ahead of the US CPI print.