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AUD/USD rose approximately 1.25% on Monday, reversing from recent lows to trade near 0.7070. The pair has been in a volatile range since reaching a peak of 0.7190 in early February, with repeated pullbacks toward the 0.7000 level before rebounding. Traders are closely watching the upcoming Reserve Bank of Australia (RBA) meeting, where a potential rate hike remains a key focus. The rebound in AUD/USD highlights market anticipation of tighter monetary policy, which could boost the Australian dollar. However, the pair remains below its February high, indicating ongoing uncertainty. Traders are balancing expectations of a rate hike against broader economic concerns, including slowing global growth and commodity price fluctuations. The RBA's decision on Tuesday will be critical for short-term AUD/USD direction. A rate hike could push the pair toward 0.7150, while a pause might see renewed pressure toward 0.7000. Investors should monitor RBA Governor Philip Lowe's post-meeting comments for clues on future policy path.
