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Aussie Dollar remains flat after Reserve Bank of Australia meeting minutes

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The Australian Dollar traded lower after the release of the RBA meeting minutes, as the central bank maintained a cautious stance on interest rate adjustments. The minutes revealed the Reserve Bank of Australia is closely monitoring inflation but sees limited room for immediate hikes, dampening market expectations for aggressive monetary tightening. This kept the AUD under pressure against major currencies, with traders now pricing in a slower rate trajectory.

Investors are focusing on global risk sentiment and economic data, with the AUD remaining highly sensitive to commodity prices and broader market trends. The central bank’s wait-and-see approach underscores concerns about the potential impact of higher borrowing costs on households and the economy. Markets are expected to stay volatile as traders digest the implications of the RBA’s cautious tone.

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