RBA Keeps Rates Steady as AUD/USD Seeks Higher Ground

The Reserve Bank of Australia (RBA) maintained its policy rate at 4.35% in a unanimous decision, as widely expected.

AUD/USD initially dipped after the statement release but rebounded when RBA Governor Michele Bullock reiterated hawkish statements, warning of persistent inflation risks and leaving room for future rate hikes if inflation stays sticky.

The RBA highlighted external risks, such as a larger or more persistent negative effect from the Middle East conflict, while also noting a softer property market due to weaker wealth effects, rising interest rates, and tighter investment property tax rules.