RBA Hike Fuels Aussie Dollar Rally Before Reversal on Less Urgent Tone

The Reserve Bank of Australia (RBA) delivered a widely expected 25bps hike to a 15-year high of 4.60% after pausing tightening in June and August.

The decision was unanimous, with the statement noting that 'some of the upside risks [to inflation] flagged in August are materialising.'

RBA Governor Michele Bullock signaled less urgency for additional tightening, stating that the four hikes this year may be sufficient, alongside confirmation that the Board considered a pause at today's meeting.

AUD/USD initially rallied on the hawkish RBA statement but reversed as Governor Bullock's comments took some of the edge off the decision.