investingLive European FX news wrap: RBA holds steady, Iran-Oman close to Hormuz deal

European FX trading was quiet ahead of U.S. CPI, with the main macro driver being the Reserve Bank of Australia’s decision to keep the cash rate unchanged at 4.35% as expected. The RBA’s updated forecasts showed lower inflation, higher unemployment, and a lower 2027 cash-rate assumption, while Governor Bullock maintained a hawkish tone and said the board did not discuss a cut, only a hike or hold. In markets, the Australian dollar dipped on the decision before recovering during the press conference. The report also noted a stronger-than-expected U.S. NFIB small business optimism reading of 99.8, and geopolitical headlines around Iran-Oman talks on the Strait of Hormuz helped push oil lower. Overall, price action was rangebound as traders waited for the U.S. CPI release, with the article emphasizing policy divergence, commodity sensitivity to Middle East developments, and short-term FX volatility around central-bank communication.