AUD Tumbles Below 0.7000 After RBA Hike Fails to Convincing Bulls

The Australian Dollar (AUD) fell below 0.7000 against the US Dollar (USD), despite an initial rally following the Reserve Bank of Australia's (RBA) interest rate decision.

The RBA raised its Cash Rate by 25 basis points to 4.60%, but RBA Governor Michele Bullock tempered expectations for another near-term hike, saying that policymakers are prepared to raise rates again if necessary but also emphasized the lagged impact of monetary tightening and recent household spending figures showing weakness across several categories.

The US Dollar remains firm due to elevated Treasury yields and expectations of further Federal Reserve (Fed) tightening, limiting the Australian Dollar's ability to benefit from higher domestic interest rates.