RBA holds rates steady, AUD/USD jumps above 0.6600 on hawkish surprise

AUD/USD surged 0.8% (55 pips) to 0.6615 following the Reserve Bank of Australia's unexpected decision to maintain rates at 4.35%, defying market expectations of a 25bp cut. The RBA indicated they require additional inflation data from the upcoming quarterly CPI report before initiating their easing cycle, suggesting a more cautious approach than markets anticipated. This hawkish tilt caught traders off-guard, triggering short covering in AUD positions. The pair broke through key resistance at 0.6580 and is now testing the 0.6620 level, with momentum indicators turning bullish. Looking ahead, today's calendar remains light with only US NFIB Small Business Optimism and NY Fed inflation expectations due, neither typically market-moving. The RBA's patient stance contrasts with other major central banks' easing bias, potentially supporting AUD crosses in the near term as carry trade dynamics shift favorably.