Governor Lowe confirmed that the bank has no rush on rate cuts.
Markets are now pricing in a 25 bps cut by year-end.
The AUD/USD pair is trading around 0.6500, up around 0.30% on the day. The Australian Dollar is benefiting from the Reserve Bank of Australia (RBA) hawkish hold. The RBA left its policy rate unchanged as expected on Tuesday, but Governor Philip Lowe said that no rate cut is on the table in the near term. This has helped to support the Australian Dollar, as it suggests that the RBA is not as dovish as some had expected.
Despite continuous high inflation rates, the data now presents considerable weaknesses in the Australian economy. This revelation has altered market expectations from anticipating a probable RBA rate hike to now considering a rate cut by the year-end
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