Australian Dollar pulls back near multi-month highs as traders await RBA Minutes

• The RBA Minutes are due later in the Asian session and are expected to echo August's hawkish hold.
• Governor Bullock has kept the Middle East conflict front and center as the main upside risk to inflation.
• Treasury Secretary Bessent is due to announce new Iran sanctions in the late American session.

AUD/USD is pulling back to the 0.7150 region, consolidating just below its recent multi-month highs. Traders are largely focused on the Reserve Bank of Australia (RBA) Minutes due later in the Asian session.

At its August meeting, the RBA left the cash rate target at 4.35%, a unanimous decision that came after three hikes earlier in the year. Governor Michele Bullock used the press conference to describe policy as "restrictive and tight" and to make clear the board "did not discuss a rate cut"; the only options considered were a hike or a hold.

Traders will comb the account for any sign the board is softening its line or edging toward the cuts the market had been expecting heading into 2027. Based on the decision and the presser, there is little reason to expect a dovish tilt, and a Minutes set that simply confirms the hawkish hold would keep Australian yields, and the Aussie, supported near the highs.

The US Treasury is expected to broaden the secondary sanctions it can impose on entities and countries that maintain business ties with Iran, according to sources familiar with the matter and Reuters. The measure aims to limit Tehran's exports and keep the near-six-month conflict around the Strait of Hormuz contained.

Technical analysis:

In the 4-hour chart, AUD/USD trades at 0.7153, retaining a constructive bullish tone as it holds above both the 20-period Simple Moving Average (SMA) at 0.7138 and the 100-period SMA at 0.7073. The pair is pressing into a tight overhead band, with nearby horizontal resistance levels at 0.7158 and 0.7167, while the Relative Strength Index (RSI 14) around 60 suggests positive but not overextended momentum that could favor further probes higher as long as these supports remain intact.

On the downside, initial support aligns at the 0.7149 horizontal level, ahead of the 20-period SMA at 0.7138 and the deeper 100-period SMA support near 0.7073. On the topside, a sustained break above 0.7158 would expose the next resistance hurdle at 0.7167, with a further barrier waiting at 0.7177, where buying pressure would need to strengthen to extend the current advance.

(The technical analysis of this story was written with the help of an AI tool. Know more.)