Forex
AUD Tumbles After RBA Rate Hike Amid US Dollar Strength
The Australian dollar slipped after the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 4.60%, its highest level in about 15 years, on Tuesday.
Although the RBA lifted rates as expected, markets focused on guidance around whether additional tightening is needed, with policymakers repeating that inflation remains too high.
The AUD/USD pair traded near 0.6990 on Tuesday, down 0.39% on the day, and fell to the 0.6980 area after an early rise towards 0.7030 faded.
US Treasury yields have been underpinning the US dollar, with expectations of further Federal Reserve tightening also contributing to its strength.