Key facts
- AUD/USD price: 0.6996
- AUD/USD day change: −0.36%
- DXY price: 101.36
- DXY day change: +0.18%
RBA hiked unanimously—then Bullock called further tightening a 'hope,' not a plan.
The RBA raised rates 25bp to 4.60% with a unanimous, hawkish statement, but Governor Bullock described further hikes as a 'hope' rather than a base case. AUD/USD reversed sharply and broke the 0.7000 support zone within the hour. Traders may now watch whether that level holds as resistance and look for further RBA communication for clarity.
RBA hikes 25bp unanimously to 4.60% with hawkish statement language
The Reserve Bank of Australia delivered a unanimous rate decision, raising rates 25bp to 4.60%. The accompanying statement carried a hawkish tone, initially suggesting further tightening could be on the table.
Markets took the decision itself largely in stride.
Bullock calls further hikes a 'hope,' not a base case, in press remarks
Governor Michele Bullock's press conference struck a softer tone than the statement, describing additional tightening as a 'hope' rather than a firm policy plan.
That shift in language appeared to catch traders off guard, triggering a swift reversal in the currency.
AUD/USD breaks below the 0.7000 support zone within the hour
AUD/USD reversed sharply following Bullock's comments, breaking below the closely watched 0.7000 support level. The pair now sits at 0.6996, down −0.36% on the day.
Traders may watch whether 0.7000 now acts as resistance, and look to further RBA communication for clarity on the actual rate path ahead.
The markets in focus
- AUD/USD: 0.6996 −0.36%
- DXY: 101.36 +0.18%
Educational information only. Not investment advice. Trading involves risk of loss.