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RBA hawkishly lifts rates, AUD gains fade and AUD/USD slips

The RBA raised its cash rate 25 bps to 4.6%, and markets are pricing nearly two additional hikes by mid-2027.

Reported · Written up by our desk · Central Banks

Commerzbank’s Volkmar Baur said the Reserve Bank of Australia raised its cash rate by 25 bps to 4.6%, the highest level in about 15 years, while adopting a notably hawkish tone, per FXStreet.

FXStreet also noted that despite the RBA signaling rates could rise further as inflation broadens beyond energy, the Australian dollar’s initial gains faded, as traders digested Governor Michele Bullock’s remarks.

The report said the AUD/USD pair turned lower to hit nine-week lows below 0.7000, after the RBA left the door open to additional hikes, with markets already pricing nearly two more hikes by mid-2027.

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