RBA Hawkish Hold, BOJ Cautious Hike, Fed's Defining Moment

Central bank actions dominated FX markets: the Reserve Bank of Australia held its key rate steady while maintaining a clear tightening bias, warning that rising energy costs could keep inflation elevated and may require further rate increases.

In Japan, the Bank of Japan delivered a cautious rate hike, signaling a slow normalization path. Meanwhile, all eyes are on the Federal Reserve's upcoming decision, which is seen as a defining moment for monetary policy. These moves set the stage for divergent currency trends.