Today’s RBA Rate Hike Not Helping AUD/USD
Today the economic calendar has been light, apart from the main event which was the Reserve Bank of Australia (RBA) meeting. This meeting which was held early in the morning kicks off the central bank bonanza for this week, with the Bank of Canada meeting coming up tomorrow before we get to the FED, ECB, BOE, and SNB meetings next week, while the BOJ will close this year on 20 December.
The RBA delivered a 25 basis points (bps) rate hike today. Although despite having hinted that rates have reached neutral levels a few meetings ago, The RBA is still following the playbook, suggesting that more rate hikes are to follow. That gave AUD/USD a small push higher this morning but on the other hand, they are still one of the “softer” central banks these days as they have hiked by 25 bps in recent meetings.
So, the decision today was a predictable one but the main point of the statement was in the final paragraph as the RBA affirmed that “The Board expects to increase interest rates further over the period ahead, but it is not on a pre-set course.”
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