The Australian Dollar has shown some minor losses after the Reserve Bank of Australia (RBA) decided to keep its current policies in place. The AUD is currently at 0.6503, according to analysts Frances Cheung and Christopher Wong from OCBC. The Statement of Monetary Policy predicts that underlying inflation will reach 3.2% this year and stay at that level until June 2026. Unemployment is expected to be around 4.4%. A recent inflation report for the third quarter was higher than anticipated, suggesting underlying inflation pressure, but wage growth is slowing down. Technical analysis shows that the mild bullish momentum is decreasing, with the Relative Strength Index (RSI) dropping as the USD strengthens. Key support levels for AUD/USD are at 0.6510, 0.6480, and 0.6445, while resistance is seen at 0.6560 and 0.6620. The FXStreet Insights Team gathers and shares market insights, providing expert-driven content but not investment advice. They stress the importance of thorough research before making financial decisions and clarify that they are not liable for any errors or losses. Their content highlights the uncertainties and risks involved in market investments, urging personal responsibility in decision-making. Disclaimers emphasize that they provide information rather than personalized advice or recommendations. With the RBA holding its policy steady, the Australian dollar faces a period of uncertainty. The bank is grappling with persistent inflation, expected to last until mid-2026, and signs of a slowing economy due to easing wage growth. This situation suggests that the AUD/USD will likely stay within a certain range for now. Recent economic data supports the idea of the central bank being on pause. The monthly CPI for October 2025 decreased slightly to 3.1%, but is still above the RBA’s target. Additionally, the Australian Bureau of Statistics reported a rise in the unemployment rate to 4.2%, highlighting a trend the RBA is closely observing. A significant challenge for the Australian dollar is the ongoing strength of the US dollar. The strong US jobs report from September 2025, with over 250,000 jobs added, indicates that the Federal Reserve is unlikely to change its hawkish approach. This difference in economic conditions may limit any significant gains for the AUD/USD pair in the upcoming weeks. For derivative traders, this market situation is ideal for strategies that benefit from low directional moves and the passage of time. One approach could be selling volatility by creating an iron condor, with short strikes around the established resistance at 0.6620 and support near 0.6445. This strategy works well if the pair remains within this expected range. Conversely, for those who prefer a “buy on dips” strategy, using options can help manage risk. Buying call spreads as the AUD/USD approaches the 0.6480 support level offers a defined-risk entry point to take advantage of a potential rebound, without fully exposing oneself to a long spot position if the US dollar strengthens unexpectedly.

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