The AUD/USD pair dropped sharply on Tuesday morning following the Reserve Bank of Australia’s (RBA) recent decision to maintain interest rates at 4.35%. This unchanged rate comes as the RBA softens its previously hawkish stance, reviving speculation of potential rate cuts in February. Traders reacted swiftly, pushing the currency pair below critical support levels. As traders weigh the RBA’s signals, the market is poised for further volatility. Investors should monitor developments closely, particularly in response to future economic data releases. The landscape appears precarious for the Australian Dollar as expectations shift. The potential for nimble trading strategies is crucial in this evolving scenario.