AUD/USD continues sideways trading around 20-day SMA. Fed Minutes on Wednesday follow RBA’s turn. May’s Retail Sales from Australia and US ADP figures are also due on Wednesday. Powell showed confidence in inflation coming back down to 2% sooner than expected. Tuesday's session witnessed the Australian Dollar clearing losses against the US Dollar following the release of the hawkish Reserve Bank of Australia minutes and the US JOLTs figures from May.
The RBA’s primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also “..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people.” Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar and vice versa. Other RBA tools include quantitative easing and tightening.