AUD/USD Holds Above Key 0.6400 Support, Focus on RBA Rate Cut

News Content – AUD/USD Holds Above 0.6400 Ahead of RBA Rate Decision

The AUD/USD pair edged slightly higher to around 0.6420 on Friday during the European session, holding firm above the key support level of 0.6400. Market participants remain cautious ahead of the Reserve Bank of Australia's (RBA) upcoming policy decision on Tuesday.

According to a Reuters poll conducted between May 12–15, the RBA is expected to cut its Official Cash Rate (OCR) by 25 basis points to 3.85%. ANZ Bank economists anticipate this will be the second rate cut of the year, driven by softening business sentiment despite easing US-China trade tensions, which included a temporary 90-day tariff reduction agreement.

Investor focus is also on the preliminary reading of the University of Michigan’s Consumer Sentiment Index, which will provide fresh insight into US consumer outlook and may influence the US Dollar’s direction.

For now, AUD/USD is expected to remain range-bound until the RBA decision provides a clearer policy signal.