• AUD/USD remained firm on Thursday as Australian dollar continued to draw support from the Reserve Bank of Australia’s surprise decision to hold rates steady earlier this week.
•The RBA kept the cash rate unchanged for the second time this year on Tuesday, surprising markets as policymakers await clearer signs that inflation is moving sustainably toward the 2.5% target midpoint.
• The move contradicted some market expectations for a cut and was seen as a vote of confidence in the domestic economy.
•Markets had nearly fully priced in a rate cut to 3.60% this week, with core inflation hitting the RBA’s target midpoint and consumer spending underperforming.
• Meanwhile, the U.S. ramped up its tariff offensive Wednesday with Trump announcing 50% duties on copper imports and Brazilian products, starting August 1.
• Traders largely shrugged off the developments, with investors appearing confident that the latest threats would not significantly disrupt global trade flows .
• Immediate resistance is located at 0.6589(23.6%fib), any close above will push the pair towards 0.6624(Higher BB).
• Support is seen at 0.6475(38.2%fib) and break below could take the pair towards 0.6424(Lower BB).
Recommendation: Good to buy around 0.6530 with stop loss of 0.6440 and target price of 0.6600
