• Australian Dollar gains ground on higher ASX 200 Index on Wednesday.
• RBA’s Bullock emphasized that the fight against inflation is still ongoing.
• PBoC has kept the interest rate unchanged at 3.45%.
• FOMC could maintain its key cash rates within a range of 5.25% to 5.5%.

The Australian Dollar (AUD) has rebounded from intraday losses and is striving to shift into positive territory on Wednesday. The higher ASX 200 may have lent support to the AUD, thereby bolstering the AUD/USD pair. However, the robust US Dollar could be exerting downward pressure on the pair.

The Reserve Bank of Australia (RBA) has chosen to maintain interest rates at a 12-year high of 4.35% on Tuesday, consistent with its stance for the third consecutive meeting. RBA Governor Michele Bullock emphasized that the battle against inflation is ongoing. While acknowledging persistently high inflation, she refrained from providing specific details regarding the timing or likelihood of rate adjustments, indicating that the bank remains open to various possibilities.

The US Dollar Index (DXY) continues its recent uptrend initiated on Thursday. The strength of the US Dollar is attributed to improved US Treasury yields. Investors eagerly await the interest rate decision from the US Federal Reserve (Fed) scheduled for Wednesday. The Federal Open Market Committee (FOMC) is widely anticipated to maintain its key federal funds interest rate within a range of 5.25% to 5.5%.