Home›Forex›Central Banks›AUD/USD sinks after RBA hike as Bullock plays down fut…

AUD/USD sinks after RBA hike as Bullock plays down future tightening

The RBA lifted the cash rate 25 basis points to 4.60% unanimously, but AUD/USD slid by breaking the 0.7000 support zone within about an hour.

Reported · Written up by our desk · Central Banks

ActionForex reports the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60% unanimously, alongside hawkish language in its statement.

The outlet says AUD/USD moved lower sharply after RBA Governor Michele Bullock indicated that additional tightening was a “hope” rather than the base case, and the pair broke below the 0.7000 support zone within the hour.

ActionForex adds that the market had largely priced in the decision before it landed, and it was Bullock’s guidance on the next policy step that the market reacted to most.

More like this

Sources