The Reserve Bank of Australia kept its policy rate of 0.1 percent unchanged.
The US Dollar Index maintains a narrow daily advance above 92.30.
The focus moves to US ISM Services PMI statistics.
The AUD/USD pair gained traction during the Asian session on Tuesday after drifting sideways in a very narrow range on Monday, reaching its highest level in a week at 0.7599 before entering a consolidation phase. At the time of writing, the pair was trading at 0.7583, up 0.72 percent for the day.
The Reserve Bank of Australia (RBA) said earlier in the day that it kept its policy rate at a record low of 0.1 percent in July, as predicted. The RBA, on the other hand, said that it will lower weekly bond purchases from A$5 billion to A$4 billion. The AUD received a lift as a result of this development.
The RBA maintained its commitment to maintaining very supportive monetary conditions in its policy statement, noting that it will not raise the cash rate unless real inflation is sustained within the 2-3 percent range.
RBA Governor Phillip Lowe stated at the post-monetary policy meeting press conference that the cash rate is unlikely to be raised before 2024.
However, ahead of the ISM Services PMI report, the US Dollar Index is registering small daily advances over 92.30, limiting AUD/upside USD’s for the time being.
Why the inflation component of the ISM Services PMI could ignite a dollar rally./n
