Australian Dollar maintains position with a positive sentiment due to the hawkish RBA

• The Australian Dollar may advance its gains as RBA Minutes indicated current cash rates for longer.
• RBA’s August Meeting Minutes suggested that a rate cut is unlikely soon.
• The US Dollar may receive support from caution ahead of the FOMC Minutes release on Wednesday.

The Australian Dollar (AUD) holds ground, aiming to extend its gains against the US Dollar (USD) on Wednesday. The strength of the AUD/USD pair is reinforced after the Reserve Bank of Australia’s (RBA) August Meeting Minutes indicated that the cash rate may remain unchanged for an extended period.

The RBA Minutes also showed that the board had considered a rate hike earlier this month before ultimately deciding that maintaining current rates would better balance the risks. Additionally, RBA members agreed that a rate cut is unlikely in the near future.