The Aussie exchange rate against the USD experienced a recovery, with the currency pair approaching the 0.6500 level during the Asian session on Tuesday. Despite Australia's inflation declining and the RBA minutes being not too hawkish, the pair still rose. The US dollar also weakened after a strong rally triggered by the US ISM PMI, giving the Aussie room to recover.

The AUD/USD pair faced resistance. The RBA is likely to maintain interest rates until November due to high inflation and a tight labor market. The US Dollar Index continued to rise as traders lowered expectations for a rate cut by the Federal Reserve in June, despite Powell stating that US inflation data was in line with expectations.

Fundamental Analysis of the Aussie Exchange Rate Today

The Australian Dollar fell against the US Dollar at the start of the week, reaching near March’s low of 0.6476 in Tuesday's trading. However, it strengthened during the Asian session due to positive news from China. The AUD/USD pair reached 0.6537 after China's Caixin Manufacturing PMI rose to 51.1 in March. However, the pair later declined during the European and Wall Street sessions.

The market reacted to US inflation data, which remained steady at 2.8% YoY in February. Federal Reserve's Powell confirmed that there would be no rush to raise interest rates. Australia started the week with a busy economic calendar, including inflation reports and job advertisements. The RBA held interest rates steady and reiterated its commitment to bringing inflation back to target.

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