AUDUSD WEEKLY CHARTAustralian Dollar vs. US DollarFX:AUDUSDShavyfxhubThe AUDUSD is setting a head and shoulder pattern ,if the right shoulder is complete ,i will watch for the break of the neckline and sell confirmation Central Bank Heads Australia (RBA) RESERVE BANK OF AUSTRALIA : Governor Michele Bullock. She has maintained a relatively hawkish stance, emphasising inflation risks and data-dependent policy. United States (Fed): Chair Kevin Warsh (succeeded Jerome Powell). Recent references indicate a transition with ongoing focus on Fed independence and policy continuity amid global central bank coordination Current Interest Rates (Policy Rates) RBA Cash Rate Target: 4.35% (unchanged since the June 16, 2026 meeting; next decision August 11, 2026). The RBA has hiked earlier in 2026 but is now on hold, assessing impacts while keeping a hawkish bias due to persistent inflation risks. US Federal Funds Rate: Target range around 3.50%–3.75% (effective rate ~3.62–3.63%). The Fed has eased from prior levels, creating a positive differential favoring AUD of roughly 60–85 basis points. This rate differential supports the Australian Dollar via carry trade attractiveness, though actual AUD/USD levels also reflect growth, commodity prices, and risk sentiment. Bond Yields and Differentials Australia 10-year Government Bond Yield: Around 4.79%–4.85% (recently ~4.842%). US 10-year Treasury Yield: Around 4.45%–4.49%. AUD-US 10-year Yield Spread: Australia higher by approximately +30 to +40 basis points (e.g., -33.6 bp when measured as US minus AUS in some trackers, meaning AUS premium). This has widened at times in 2026 due to divergent policy expectations but remains supportive for AUD. Shorter-term spreads (e.g., 2-year) show a larger Australian premium (~+90 bp in some periods), reinforcing carry. Overall Impact on AUD/USD: Positive rate and yield differentials favor AUD strength (higher-yielding currency attracts capital). However, AUD/USD has traded around 0.69–0.70 recently, influenced by broader factors like Chinese growth (key for Australia), US data, commodities, and risk sentiment. RBA hawkishness vs. Fed easing path supports AUD, but slowing Australian growth and external risks (e.g., commodities) can cap gains. Markets price limited further RBA hikes. These differentials are key drivers for AUD/USD via carry trades and capital flows, but they interact with economic data, inflation trajectories, and global risk appetite. #AUDUSD