The RBA’s 25bp hike to 4.85% was read as terminal, and the AUD fell as futures priced no further hikes through 2027. That contrasts with expected Fed tightening, narrowing relative rate support for the Australian dollar. Near-term sentiment is bearish for AUD, with the decision marking peak RBA hawkishness.
AI Insight · NCFXAUD2USD/USDTAI Insight
▼ Bearish
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The Reserve Bank of Australia raised the cash rate by 25 basis points to 4.85 per cent, an 18-year high. Markets expect no further rate increases this year and through 2027.