FX.co ★ Australian Dollar Moves Little

The Australian dollar remained relatively stable at approximately $0.652 on Wednesday. This stability followed the Reserve Bank of Australia’s unexpected decision to keep interest rates steady at 3.85% on Tuesday. The decision was made as the majority of the board members preferred to wait for more definitive signs of a slowdown in inflation. RBA Governor Michele Bullock noted in a post-meeting conference that significant inflationary pressures persist, largely due to high labor costs and sluggish productivity, which could lead to inflation exceeding current projections. Additionally, RBA Deputy Governor Hauser mentioned that the central bank is closely monitoring developments related to US tariffs, highlighting the significant uncertainty on a global scale. In the latest trade announcement, Trump declared there would be no further extensions to the tariffs scheduled for August 1 and unveiled extensive new measures, including a 50% tariff on copper imports, potential 200% duties on pharmaceuticals, and a 10% levy on products from BRICS nations. Moreover, the presence of mixed inflation data from China, Australia's largest trading partner, also tempered any significant fluctuations for the Australian dollar.