AUD Slips Despite Hawkish RBA Rate Hike Ahead of Key Data

The AUD/USD exchange rate dropped despite the Reserve Bank of Australia's (RBA) decision to raise the cash rate by 25 basis points to 4.60%, in line with expectations.

The RBA's hawkish stance was already priced into the market, according to investors, which may have contributed to the Aussie dollar's weakness.

The US dollar has remained supported following recent turmoil in the bond markets and is likely to continue influencing the AUD/USD outlook.

A key technical level for the AUD/USD is 0.7000, with a break below this level indicating bearish sentiment and potentially leading to further selling towards 0.6900 or even 0.6800.