AUD Slips Below 0.7000 After RBA Rate Hike

The Australian Dollar has slipped back below 0.7000 against the US Dollar after the Reserve Bank of Australia (RBA) raised interest rates for the fourth time this year to 4.60%. The RBA's commitment to tackling persistent inflation and its willingness to increase the cash rate target further if needed has tempered expectations for further tightening.

Despite Governor Bullock's cautious remarks that four hikes may be restrictive enough to slow inflation, the AUD/USD pair fell back below the 0.7000-level and is currently testing important levels around the 200-day moving average near 0.7030.