AUD/USD Rises on RBA Rate Hike Signals Amid Persistent Inflation

AUD/USD advanced 0.5% to 0.6485 as the Reserve Bank of Australia maintained its hawkish stance, suggesting additional rate hikes are likely with inflation remaining stubbornly above target. The RBA's latest minutes revealed policymakers' concerns about persistent price pressures, particularly in services and housing sectors where inflation continues running at 4.2% annually, well above the 2-3% target band. Market pricing now indicates a 75% probability of another 25 basis point hike at the March meeting. The Australian dollar found additional support from stronger-than-expected retail sales data showing 0.8% monthly growth. Technical indicators show immediate resistance at 0.6520, with a break above potentially targeting 0.6580. Support sits at 0.6450, aligned with the 50-day moving average. Traders should monitor upcoming Australian employment data and Chinese economic indicators for further directional cues.