Aussie Remains Subdued Despite RBA's Fourth Hike

The Australian dollar traded around $0.70 on Thursday, stuck near multi-month lows despite the Reserve Bank of Australia's (RBA) fourth interest rate hike this year.

In a unanimous decision, the RBA raised its cash rate by 25 basis points to 4.60%, the highest level since 2011, citing persistent inflationary pressures and higher global energy prices stoked by the Middle East conflict.

The central bank has now raised rates by a total of 100 basis points this year, but the September move was largely priced into markets as investors focused on further tightening expectations.

Swaps market participants priced in a 56% chance of a follow-up move in November, reflecting ongoing concerns about inflation and monetary policy.