AUD Falls Below 0.70 Despite RBA Hike

The Australian-US dollar exchange rate fell below 0.70 after the Reserve Bank of Australia (RBA) interest-rate hike, despite expectations of a stronger AUD.

ING kept its December recovery forecast at 0.720 and warned of greater near-term downside risk due to global economic uncertainty and housing market risks.

The RBA's decision to raise rates by 25 basis points to 4.60% was seen as neutral, with Governor Michele Bullock noting that policymakers considered holding rates steady.

Banks still see a recovery for AUD/USD in the long term, but their forecasts vary, with Goldman Sachs predicting 0.72 in three months and UBS suggesting it will take longer to reach 0.70 by December 2026.