AUD/USD pressured as RBA holds rates at 3.60% despite inflation surge

AUD/USD has declined 0.5% to 0.6420 following the Reserve Bank of Australia's decision to maintain interest rates at 3.60%, despite inflation accelerating to 5.4% year-over-year and property prices surging 8.2% quarterly. The RBA's dovish hold surprised markets expecting a 25 basis point hike, citing concerns over household debt levels and global growth uncertainties. AUD/CAD fell 0.7% to 0.8750 as commodity currencies broadly weakened. Governor Michele Bullock emphasized the central bank's patient approach, noting inflation remains within the 2-6% target band's upper range. Technical indicators show AUD/USD testing critical support at 0.6400, with next levels at 0.6350. Resistance stands at 0.6480 (200-day moving average). The decision raises questions about RBA's inflation-fighting credibility, potentially keeping AUD under pressure until clearer hawkish signals emerge.