AUD Edges Up as RBA Maintains Hawkish Stance Despite Market Expectations

The Australian Dollar saw a slight gain after the Reserve Bank of Australia (RBA) maintained its hawkish stance, leaving interest rates unchanged at 4.35% for the second time in a row.

RBA Governor Michele Bullock emphasized that 'still need to see progress before being confident on CPI,' and added that 'We will raise rates again if needed.'

However, market experts shared a contrary view, citing that the RBA's updated forecasts suggest a less hawkish stance. TD Securities noted that the RBA's Statement and revised forecasts imply a rate hike is not the Bank's central forecast.

TD highlighted that the RBA 'does not appear to have the appetite to hike preemptively either,' but acknowledged that the Press Conference took on a hawkish tone, with the Governor stressing the possibility of another hike. Commerzbank analysts expect an interest rate cut by the RBA instead.