
RBA Hikes to 4.85%, but Split Vote and Softer Guidance Hit AUD/USD
The RBA hikes rates to 4.85%, but a split vote and softer forward guidance weigh on AUD/USD despite sharply higher inflation forecasts.
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The RBA hikes rates to 4.85%, but a split vote and softer forward guidance weigh on AUD/USD despite sharply higher inflation forecasts.

AUD/USD faces a pivotal week as an expected RBA hike, US midterm elections and nonfarm payrolls test the Australian dollar's recovery.

Australia's inflation problem extends well beyond energy, with markets now pricing further RBA hikes into 2027. So why has AUD/USD reversed sharply after its initial surge?

Aussie and Kiwi have gone remarkably quiet ahead of Australian inflation data and RBNZ decision. With substantial tightening priced and both events capable of generating major FX swings, Wednesday could deliver a volatility eruption in the antipodes.

AUD/USD defies a potential head-and-shoulders breakdown as RBA rate hike bets surge and a weaker US dollar fuels an Australian dollar rally.

Australian bond futures have exhibited a far stronger relationship with the ASX 200 than Wall Street over recent months. Now both markets are displaying remarkably similar price structures.

AUD/USD remains below 70c as hawkish RBA minutes contrast with weaker business confidence. Australian jobs data and US CPI are the next catalysts.

GBP/AUD is forming a potential bullish continuation pattern, with RBA minutes, Australian unemployment and Bank of England commentary among the catalysts that could spark a breakout.

US yields, dollar strength and fading RBA hike bets have combined to drive AUD/USD to fresh multi-month lows. The macro and technical bias remains bearish, although history suggests parts of the move are now reaching unusually stretched levels.

The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.

Recent trading sessions have reflected a more neutral tone around the Australian dollar. This can be seen in AUD/USD price action, which has posted moves of roughly 0.2% over the last two sessions without establishing a clear direction. Much of this lack of momentum is linked to expectations surrounding the next policy moves from both the Reserve Bank of Australia (RBA) and the Federal Reserve.

AUD/USD is trading at its highest since early May, with the yen’s continued rally helping soften the dollar and amplify the Aussie’s upside response.

RBA hike pricing has surged as inflation, spending and GDP all beat expectations, adding to tailwinds for the AUD from stronger metals prices.
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