AUD Sinks Despite RBA's Hawkish Rate Hike

The Australian dollar has slipped despite a hawkish rate hike by the Reserve Bank of Australia (RBA), which lifted the cash rate to 4.60% overnight. The move was in line with expectations, but the Aussie weakened following the decision.

RBA Governor Michele Bullock emphasized that the bank will do whatever it considers necessary to contain inflation, citing tight labor market conditions and persistent inflationary pressures as reasons for maintaining a restrictive policy stance.

The technical outlook is bearish, with a break below 0.7000 confirming the break of key levels. A close below this level could lead to follow-up selling towards 0.6900, with potential further declines towards 0.6800.