RBA Hold Pressures AUD/USD as Downside Risks Persist

The Australian dollar has given back some of the gains it made after the so-called US-Iran peace agreement, following the Reserve Bank of Australia's decision to hold rates steady. BBH analyst Elias Haddad notes that the RBA's pause keeps downside risks for AUD/USD alive.

AUD/USD had rallied earlier on a perceived de-escalation in US-Iran tensions, but the currency pair has since retraced as markets digest the RBA's unchanged policy stance. Haddad points out that the central bank is likely to maintain its cautious tone, leaving the Aussie vulnerable to further declines.

Traders should watch for additional guidance from the RBA and broader risk sentiment as key drivers for the pair in the near term.