SentiSignal Editorial TeamFebruary 4, 2026, 06:01 AM165 words6 sourcesAI-Generated · Reviewed by editorial team
AUD/USD
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The Reserve Bank of Australia (RBA) implemented a 25 basis point interest rate hike, raising the cash rate to 3.85% in response to persistent inflation risks. The Australian CPI grew by 3.6% annually, exceeding previous readings and justifying the RBA’s hawkish stance. This decision has provided support to the Australian Dollar (AUD), strengthening it against the US Dollar (USD) and notably against the Japanese Yen. Markets are pricing in further potential tightening from the RBA, contributing to a bullish outlook for AUD/USD, with TD Securities predicting a trading range of 69-71 cents in the near term. While the RBA’s actions are positive for the AUD, the broader economic impact of the rate hikes remains under observation. Diverging monetary policies between the RBA and the US Federal Reserve are also supporting the AUD’s uptrend. However, external factors like political uncertainty in Japan (strengthening USD/JPY) and declining oil prices (weakening USD/CAD) are influencing currency markets. The US Dollar remains relatively calm amidst a partial US federal shutdown.
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