AUD/USD eyes RBA rate hike to 4.35% as Asia-Pacific markets await decision

AUD/USD is in focus as the Reserve Bank of Australia is widely expected to deliver a 25 basis point rate hike, bringing the cash rate to 4.35% — a level that would mark the highest in over a decade. The decision comes during the Asia-Pacific session, with traders closely monitoring forward guidance for signals on whether the tightening cycle has further to run. Supporting the backdrop, Bank of Canada Governor Macklem publicly backed Federal Reserve independence amid speculation surrounding Fed Chair Powell's departure, adding a layer of USD uncertainty. The interplay between a hawkish RBA and potential Fed leadership transition could create divergent monetary policy expectations, supporting AUD/USD in the near term. Traders should watch for immediate resistance near the 0.6550–0.6580 zone, with support around 0.6480. A hawkish hold or surprise in the RBA's statement could push the pair higher, while a dovish tone despite the hike may cap gains. USD/CAD may also see volatility given Macklem's comments reinforcing Canadian central bank credibility.