AUD/USD spikes to 0.6615 as RBA defies rate cut expectations

AUD/USD jumped 0.8% to 0.6615 after the Reserve Bank of Australia surprised markets by keeping interest rates unchanged at 4.35%, despite widespread expectations for a 25 basis point cut. The central bank's decision reflects ongoing concerns about inflation persistence, with officials preferring to wait for the next quarterly CPI data before committing to policy easing. This unexpected hawkish stance triggered immediate AUD buying across the board, with AUD/JPY gaining 1.2% and EUR/AUD dropping 0.7%. The Australian dollar's strength comes amid broader USD weakness, amplifying the move higher. Technical indicators show AUD/USD breaking above the 50-day moving average at 0.6585, with next resistance at 0.6650. The RBA's patience contrasts sharply with dovish pivots from other major central banks, potentially establishing a more favorable interest rate differential for the Aussie in coming months.