Reserve Bank of Australia

RBA hikes 25bp, In line with expectations, AUD receives a boost.

GBP/AUD was higher at the start of a new month following a 25 basis point rate hike at the Reserve Bank of Australia that left the Aussie Dollar trading in mixed fashion.

The Australian Dollar was lower after the Reserve Bank of Australia (RBA) signalled the top in Aussie interest rates was nearing after it delivered a 25 basis point interest rate hike.

The Australian Dollar came under pressure in the final session of the week but its losses did not appear to be connected with Reserve Bank of Australia Governor Philip Lowe suggestion that the RBA's interest rate could top out lower than financial markets currently expect.

"The labour market is extremely tight, and all indicators suggests it is poised for further strength"

AUD trading softer, Lowe's speech in focus, RBA to slow rate hiking cycle as Aussie trade balance declines.

AUD was a cast adrift following another 50 basis point interest rate hike at the Reserve Bank of Australia (RBA) thatch alongside signs the central bank is nearing the end of its tightening cycle.

The RBA raised interest rates by 50 basis points to 1.85%, as expected, but the Australian Dollar fell back on signs future hikes would be less aggressive.

RBA Governor Lowe confirmed interest rates would likely double from current levels, potentially undermining the Australian Dollar.

The Pound to Australian Dollar exchange rate came under pressure early in the new week after a buoyant Sterling was unable to offset a rally by antipodean currencies like the Aussie, which has pushed GBP/AUD below 1.75 and left it at risk of sliding back toward 2022 lows in days ahead.

The RBA's August policy decision looms large for AUD and new analysis suggests the meeting might disappoint those wanting a stronger currency.

The development is inflationary and will therefore likely maintain pressure on the RBA to pursue higher interest rates, which is on balance consistent with a stronger Australian Dollar.

The Australian Dollar outperformed many other major currencies after the RBA June interest rate decision was widely interpreted as signalling a hawkish turn in the RBA’s policy stance.

The Pound to Australian Dollar exchange rate entered the new week close to some of its lowest levels since 2019 and  would be at risk of slipping back to 1.72 in the week ahead if Tuesday’s Reserve Bank of Australia (RBA) policy decision provides the Antipodean currency with a further tailwind.

The RBA raised the key interest rate by 25 basis points and signalled a number of further hikes are expected, offering near-term support to the Australian Dollar.

Any positive impact on AUD from RBA rate hikes may be offset by a challenging external environment.

The Australian Dollar rose against the British Pound, Euro and Dollar as London's market reopened following a long weekend and investors reacted to indications an interest rate at the Reserve Bank of Australia is nearing.

The Pound to Australian Dollar exchange rate fell to four-year lows early in the new week and could be at risk of slipping further toward 1.70 over the coming days after the Reserve Bank of Australia (RBA) indicated that it could, after all, meet market expectations for its interest rate.

AUD remains a top performer, but the RBA is sticking to its guidance on interest rate hikes which ooses scope for AUD disappointment.

GBP/AUD could hold above 1.90 short-term after RBA leaves AUD/USD bereft of support.