RBA Interest Rate Hike Expected to Boost AUD

The Reserve Bank of Australia (RBA) is expected to raise interest rates by 25 basis points to 4.60% on its upcoming decision, according to market expectations.

With the hike all but priced in, the Australian dollar's reaction will likely depend on the tone of the RBA's statement rather than the decision itself, according to ING.

ING expects a hawkish hike to support the AUD, but notes that there is a near-term risk of the currency falling below 0.70 against the US dollar due to the greenback's recent strength.