AUD/USD edges higher to 0.6550 ahead of crucial RBA policy decision

AUD/USD has gained modest ground, trading around 0.6550 as markets position ahead of the Reserve Bank of Australia's policy announcement. The Australian dollar received support from expectations that the RBA will maintain its cautious approach to monetary policy, potentially signaling concerns about economic growth while balancing inflation risks. The pair's slight appreciation reflects a combination of pre-RBA positioning and broader risk sentiment improvements in Asian trading. Market participants anticipate the RBA will keep rates unchanged but focus intently on forward guidance and any shifts in the central bank's economic assessment. Technical levels show immediate resistance at 0.6580, while support has formed at 0.6520. A hawkish surprise from the RBA could propel AUD/USD toward 0.6600, while dovish commentary might pressure the pair back below 0.6500. Chinese economic data and commodity prices remain additional factors influencing the Australian dollar's near-term trajectory.